khadi
TRANSCRIPT
Khadi - The Fabric of Freedom and Fashion
The first true Indian designer was Mahatma Gandhi when he urged the people of India to wear khadi garments. It was not only a call to create self reliance but a call to create self reliance but a call to wear something that could prove the unity of India. Khadi was given a more important status by Gandhi after his return from South Africa. While in search of the charkha Gandhi felt that for a nation to turn self-reliant, it had to return to indigenous manufactured goods.
Gandhi wrote. Swaraj (self-rule) without swadeshi (country made goods) is a lifeless corpse and if Swadeshi is the soul of Swaraj, khadi is the essence of swedeshi. Therefore khadi became not only a symbol of revolution and resistance but part of an Indian identity.
Gandhi confessed though, When I first discovered the spinning wheel it was purely through intuition. It was not backed by knowledge so much so that I confused charkha with kargha (handloom).
These two forms of fabrics have always confused people. While khadi is hand made, handloom yarn is processed at the mills.
Many fashion conscious Indians will know that India’s rendezvour with textile dates back to ancient times when the Aryans in the Vedic period produced their own cloth. In fact, khadi (which means any cloth that is hand spun and hand woven) had a most religious role in marriages when brides in India were presented with a khada charkha in their wedding trousseau to encourage spinning of the yarn.
Roman gold, says history, paid for the import of Indian textiles, while Alexander the Great, when he invaded the country in 327 BC, was dazzled by the art of fabric making and printing as also was Marco Polo the Venetian traveler. It was in 1921 that Gandhi launched the movement of spin your own cloth and buy hand spun cloth which gained momentum making khadi the fabric of the freedom struggle.
Around that time Gandhi used khadi as the uniform for the first Non Cooperation movement and the Gandhi cap had strong symbolic overtones- that of the Indo-British battle over the looms of Manchester and a bid for a modern Indian identity. So deep rooted was the sentiment attached to this fabric that Pandit Nehru wove for his daughter Indira a wedding sari in salmon pink khadi while he was in jail. This sari is still worn by women of the Nehru-Gandhi family on their wedding day.
In 1953 when the Khadi and Village Industries Board was established it had only 156 registered institutions. Today every village however remote or small has it own khadi institutions. Initially the weaving of khadi was rather difficult as it was impossible tow eave a full length of cotton with the uneven khadi thread and at one time Gandhi is believed to have threatened to wear a sack if he was not provided with a khadi dhoti. Today the range of khadi products is unlimited from garments to household linen to furnishings, etc.
The weaving of khadi is preceded by the spinning of the thread on the charkha after which it goes to the bobbin winder, warper, sizer and finally the weaver. While spinning is organized by the khadi Board, weaving is done by the weaver at his home in an individual capacity. Spinning is mostly done by the girls and women in the villages, while weaving is dominated by men. Because of the work involved, the price of the khadi cloth when it reaches the shops is more than that of the mill or handloom cloth.
Khadi over the decades has moved from a freedom fighter’s identity fabric to a fashion garment. At one time it was scorned as fabric for the farmer and the rural wearer. Today there is such an increasing demand for khadi is such an increasing demand for khadi cloth that despite the million workers all over the country involved in spinning it they are unable to meet the demands of the market.
In 1989 the first high fashion khadi show was presented in Mumbai by the Khadi and Village Industries Commission (KVIC) where nearly 85 dazzling garments were created by Devika Bhojwani.
There was an exciting array of eastern and western attire. Devika had launched the Swadesi label in 1985 which was distributed through nearly 5000 Khadi Gramodyog Bhandars and Emporia.
In 1990 designer Ritu Kumar of Delhi presented her first Khadi collection at the Crafts Museum. Her Tree of Life show, an audio visual tableau spanning the history of textiles in India, showed the design lexicon of the country, the creators of textiles, those who have regenerated textile crafts and those who would wear the garments.
Eight collections were presented of which khadi was a very significant one. Since then the Tree of Life show has been presented several times for charity and caused a stir with its creations. Once again in 1997 Ritu Kumar presented the Tree of Life shown this time in London where the British were amazed with her khadi collections.
Once the sign of freedom, Khadi today holds it own on the fashion scene… it is a part of every wardrobe when it comes to selecting fabric with a discerning eye, informs Rity Kumar.
Today the younger generation may draw inspiration from the way film and MTV stars are dressing, but there was a time when fashion too was dictated by our political leaders More than the dresses it was what they signified and the fiery personalities behind them that caught the imagination of the masses and influenced them to unwaveringly follow the footsteps of their leaders, even in adapting the way they dressed, recalls Ritu Kumar.
Reveals Ritu, Actually, they were the first generation growing up after Independence and so the need to underline their identity was immense. There was also the need to emerge with something totally different and in opposition from the dress code foreign rulers had imposed.
Another person who ahs been working regularly with khadi is Kamal Wadkar, the well know promoter of traditional crafts. For decades khadi has been associated with rural wear. Although many would say it is just the right fabric for
the Indian climate due to its loose weave and cool texture, khadi lacked that touch of style which other fabrics like rubia, linen or cotton had observes Kamal.
Kamal has been associated with the Gujarat Handicrafts Board (Gurjari) and the Mumbai Khadi Sangh. Her exhibitions in Mumbai for KVIC (Khadi Village Industries Commission) have netted nearly Rs.12.5 million. Kamal has presented nearly 4500 garments in 150 styles in different colours weaves and embellishment with prices ranging from Rs.460-750.
Her exhibition titled Elegance in Khadi and Khubsoorat Khadi with eight designer collections presented ethnic wear in varied forms besides western garments.
But since Khadi is woven by hand in villages it is often difficult to provide large quantities of the fabric at short notice. Yet it is this handmade quality of the fabric with its inherent defects that is the beauty of Khadi and that is what the buyer wants at times. Says Kamal it is not a poor man’s fabric although it provides employment to the poor man. It is a very up-market fabric emphasizes Kamal. Khadi dhotis are turned into printed Kurtas and dupattas.
There are times when the price and coarseness of the fabric deterred the fashion conscious from wearing it. But today khadi has many faces which are not just restricted to cotton. There is Khadi is quite competitive now and depending on the style of the garment it could range between Rs.400-2500.
There is a quaint story of how Gandhi while visiting a poor village spoke to an old woman huddled in her dark dingy hut asking if there was anything she needed. The woman said she had everything pointing to an old charkha in the corner.
The rediscovery of the charkha has brought in a new economic thinking for Indians. It has given new life to the individual made him more resourceful and self dependent. Making khadi a true start of democracy in the true sense. Khadi, however, can no longer be sold on an emotional level. A new approach has to be adopted for the new generation who are unaware of its original implications. It will be worthwhile for the young and trendy generations of the 90s to discover the beauty of khadi and support is as a fabric of our tradition.
Khadi - Recent Status and Future Scope
The present infrastructure set up of the Khadi sector in India speaks volumes about its importance in the Country’s Economy.
A. Cotton, Silk, Wool & Muslin Spindles installed 2.18 million
Yarn Produced 25.91 million kgs
Looms installed: 1,33,270 nos.
Employment 14.97 lakhs
Total Production 111.49 million sq.mtrs
Sales Rs.581.20 crores
B. Polyvastra The handspun yarn and hand-woven cloth obtained by blending polyester staple fiber with other natural fibers Spindles installed 0.20 million
Yarn Produced 1.45 million kgs
Looms installed: 8,727 nos.
Employment 0.46 lakh
Total Production 10.05 million sq.mtrs
Sales Rs. 42.35 crores
Standardization and Quality Control Infrastructure
Khadi is produced by interlacement of handspun yarn or handloom. Use of only natural fiber is permitted in Khadi spinning. Because of vast diversity in the attitude and culture of Indian masses, the difference is bound to occur. However, KVIC is very concerned about adherence to standard norms of quality in its produces.
Testing of Khadi is a two pronged activity viz. mechanical and chemical. Such testing facilities are available in KVIC sector. Khadi Gramodyog Proyog Samiti, a descendent of Sarva Seva Sangh and an affiliated institution of KVIC has got a well-equipped test house to ascertain the qualities with respect to mechanical processing. Most of the institutions whose size falls under the major category have got in-house facilities for mechanical aspects. The dyeing and printing lab under Directorate of Khadi processing, Mumbai is fully equipped for testing the fabric to ascertain wet / chemical processing aspects. Properties indicating fastness such as washing, light perspiration and bleaching etc. can also be tested in this lab. Stringent Quality Control mechanisms and the rising demand for Khadi Exports have ensured a bright future for this fabric which is "the Pride of India".
ABOUT VILLAGE INDUSTRIES
A “Village Industry” means –
(i) ...any industry located in a rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed [one lakh rupees] or such other sum as may, by notification in the Official Gazette, be specified from time to time by the Central Government;
Provided that any industry specified in the Schedule and located in an area other than a rural area and recognised as a village industry at any time before the commencement of the Khadi and Village Industries Commission (Amendment) Act, 1987 shall, notwithstanding anything contained in the sub-clause, continue to be a village industry under this Act;
Provided further that in the case of any industry located in a hilly area, the provisions of this sub-clause shall have effect as if for the words "one lakh rupees", the words "one lakh and fifty thousand rupees" had been substituted.
(ii) ...any other non-manufacturing unit established for the sole purpose of promoting, maintaining, assisting, servicing (including mother units) or managing any village industry.
Programme for promotion of V.I. Cluster - Rural Industry Service Centre (RISC)for Khadi and V.I. activity up to Rs.5.00 lakhs
Title of the Programme : Programme for promotion of V.I Cluster- Rural Industry Service Centre (RISC) for Khadi and V.I. activity. Objectives of the Programme :
Provide backward forward linkages to Khadi & V.I. activities in a cluster. To provided services like raw material support, skill up-gradation, training, Quality Control, Testing facilities, marketing promotion, design & product development in order to strengthen the rural clusters.
Implementing Agency :
(1) KVIC and State KVIBs.
(2) National level / State level Khadi and V.I. Federations
(3) Khadi and V.I. Institutions affiliated to KVIC and KVIBs.
(4) NGO who have already worked in implementation of programme relating to development of rural artisans in activities excluding the negative list of KVIC with financial assistance at least for 3 projects from any Ministry of State / Central Government, CAPART, NABARD and UN agencies.
Rural Industry Service Centre (RISC):
“Rural Industry Service Centre (RISC) is the Common Facility Unit which aims to provide infrastructural support and necessary services to the local units to upgrade their production capacity, skill upgradation and market promotion.”
One of the following services must be covered by the Rural Industry Service Centre (RISC)
a) Provide testing facilities by establishing laboratory to ensure quality of the products.
b) Provide improved machinery/equipment to be utilised as common utility facilities by the nearby unites /artisans to enhance production capacity or value addition of the product
c) Provide attractive and appropriate packaging facilities and machineries to the local unties / artisans for better marketing of their products.
In addition of the above facilities RISC can also cater to following services:
i) Provide training facilities to upgrade artisan’s skill in order to increase their earnings.
ii) Provide new design or new product, diversified product in consultation with experts /agencies for a value addition of rural manufacturing units.
iii) Provide raw material support which mainly depend on seasonal procurement.
iv) Prepare product catalogue.
Types of Khadi & Village Industries to be covered under Rural Industry Service Centre (RISC) :
Khadi & Poly Vastra post weaving value addition facilities. Herbal products: Cosmetics and Medicines.
Edible Oil,
Detergents & Soaps.
Honey
Hand Made Paper
Food processing
Bio-Fertilizer / Bio-Pesticides / Bio Manure
Potteries
Leather
Woodwork
All other V.I. except those which are in the negative list.
Financial Pattern NE States Other areas
a)KVIC’s Share 90% 75%
b)Own Contribution or Loan from Bank/Financial Institutions
10% 25%
In case of North Eastern States 90% of project cost will be provided by KVIC upto a project cost of Rs.5.00 lakhs.
The financial assistance should follow the norms below:
a) Building/Infrastructure : Maximum 15% of project cost.
b)Plant & Machinery for manufacturing and or testing facilities and packaging : Minimum 50% of project cost.
c) Raw material /new design, product Diversification, etc. : Maximum 25% of project cost.
d) Skill upgradation & training and/ or Product catalogue : Maximum 10% of Project cost.
However, a, c, d can be reduced depending upon requirements as the case may be.
Sanctioning Authority :
The project proposals to set up Rural Industry Service Centre (RISC) upto Rs. 5 lakhs will be appraised and sanctioned by a Committee constituted for the purpose at State / Regional level, consisting of following members : i) Director Industry of concerned State Govt. or his representative not below the : Member rank of Additional Director ii) CEO of concerned State KVI Board : Memberiii) Representative of Lead Bank in the State / Region : Memberiv) Representative of NABARD : Memberv) Secretary of KVI Institution Having highest turn over in the State : Membervi) State/Regional Director, KVIC : Member/Convenor
Terms and References : 1) The Committee will evaluate capability of the organisation to implement 2) The Committee will examine commercial viability of the project.3) Accord approval upto project of Rs. 5 lakhs 4) Evaluate and monitor the execution of programme in the Rural Industry Service Centre (RISC) Release of fund : After Committee approved the proposal, the funds will be released in 2 installments by State/Regional Directors. The first installment will be 50% of the amount share of KVIC for the project. The second and last installment will be released only after amount released by KVIC and 50% of the share of the organisation is utilized. Stages of Programme implementation :
Identification of the cluster. Selection of a Cluster Development Agency. Technical feasibility by and expert or an agency. Project formulation. Approval of the project and release of funds. Monitoring and Evaluation.
OPERATIONALISATION AND PROGRAMME IMPLEMENTATION : For the purpose of establishing Rural Industry Service Centre (RISC), it may be ensured that the number of artisans / Village Industries units shall not be less than 25 individual artisans or 5 REGP units / VI Institutions / Societies for projects upto Rs.5.00 lakhs. The implementing agency / Organisation should have its own land where the Rural Industry Service Centre (RISC) will be established.
The period of setting of project should not be more than 6 months.
After submission of the proposal by the implementing agency to set up Rural Industry Service Centre (RISC), State / Regional Director shall conduct technical feasibility and place the proposal with his recommendations before State Level Committee. Technical feasibility may done either by DIC or by State Office or State Board The funds shall be released based on the progress of work report received periodically from State / Regional Director and based on activities of the project and also within a specific time frame for timely completion of the project. The State / Regional Director of the concerned state where the project is located shall ensure monitoring and evaluation and timely completion of project. After obtaining approval by the State Level Committee for setting up of project State/Regional Director will intimate to concerned Industry Programme Directors at Central Office of the Commission. Sd/-
Dy. Chief Executive Officer (VI)
Programme for promotion of V.I Cluster - Rural Industry Service Centre(RISC)
for Khadi and V.I. activity up to Rs. 25.00 lakhs Title of the Programme : Programme for promotion of V.I Cluster- Rural Industry Service Centre (RISC) for Khadi and V.I. activity.
Objectives of the Programme :
Provide backward forward linkages to Khadi & V.I. activities in a cluster. To provide services like raw material support, skill up-gradation, training, Quality Control, Testing facilities, marketing promotion, design & product development in order to strengthen the rural clusters.
Implementing Agency :
(1) KVIC and State KVIBs.
(2) National level / State level Khadi and V.I. Federations
(3) Khadi and V.I. Institutions affiliated to KVIC and KVIBs.
(4) NGO who have already worked in implementation of programme relating to development of rural artisans in activities excluding the negative list of KVIC with financial assistance at least for 3 projects from any Ministry of State / Central Government, CAPART, NABARD and UN agencies.
Rural Industry Service Centre (RISC) :
“Rural Industry Service Centre (RISC) is the Common Facility Unit which aims to provide infrastructural support and necessary services to the local units to upgrade their production capacity, skill upgradation and market promotion.”
One of the following services must be covered by the Rural Industry Service Centre (RISC)
a) Provide testing facilities by establishing laboratory to ensure quality of the products.
b) Provide improved machinery/equipment to be utilised as common utility facilities by the nearby unites /artisans to enhance production capacity or value addition of the product
c) Provide attractive and appropriate packaging facilities and machineries to the local unties / artisans for better marketing of their products.
In addition of the above facilities RISC can also cater to following services:
i) Provide training facilities to upgrade artisan’s skill in order to increase their earnings.
ii) Provide new design or new product, diversified product in consultation with experts /agencies for a value addition of rural manufacturing units.
iii) Provide raw material support, which mainly depend on seasonal procurement.
iv) Prepare product catalogue.
Types of Khadi & Village Industries to be covered under Rural Industry Service Centre (RISC) :
Khadi & Poly Vastra post weaving value addition facilities. Herbal products: Cosmetics and Medicines.
Edible Oil,
Detergents & Soaps.
Honey
Hand Made Paper
Food processing
Bio-Fertilizer / Bio-Pesticides / Bio Manure
Pottery
Leather
Woodwork
All other V.I. except those which are in the negative list.
Financial Pattern NE States Other areas
a. KVIC’s Share 90% 75%
b. Own Contribution
or Loan from Bank/ 10% 25%
Financial Institutions
In case of North Eastern States 90% of project cost will be provided by KVIC upto a project cost of Rs.25.00 lakhs.
The financial assistance should follow the norms below:
a) Building/Infrastructure : Maximum 15% of project cost.
b)Plant & Machinery for manufacturing and or testing facilities and packaging : Minimum 50% of project cost.
c) Raw material /new design, product Diversification, etc. : Maximum 25% of project cost.
d) Skill upgradation & training and/ or Product catalogue : Maximum 10% of Project cost.
However, a, c, d can be reduced depending upon requirements as the case may be.
Appraisal and Recommendation Authority :
The project proposals to set up Rural Industry Service Centre (RISC) upto Rs. 25 lakhs will be scrutinized and recommend by a Committee constituted for the purpose at State / Regional level, consisting of following members for sanction: i) Director Industry of concerned State Govt. or his representative not below the : Member rank of Additional Director ii) CEO of concerned State KVI Board : Memberiii) Representative of Lead Bank in the State / Region : Member
iv) Representative of NABARD : Memberv) Secretary of KVI Institution Having highest turn over in the State : Membervi) State/Regional Director, KVIC : Member/Convenor Terms and References : The Committee will evaluate capability of the organisation to implement The Committee will examine commercial viability of the project.Evaluate and monitor the execution of programme in the Rural Industry Service Centre (RISC) Technical appraisal Committee : The project proposals to set up Rural Industry Service Centre (RISC) upto Rs. 25 lakhs will be technically appraised by a Committee constituted for the purpose at Central level, Central Office, KVIC, Mumbai-56, consisting of following members after appraisal and recommendation of State / Regional level Committee: i) Financial Advisor, KVIC : Chairmanii) General Manager of lead Bank : Memberiii) One Expert Member from IIT Concerned with subject of the project : Memberiv) Dy. Chief Executive Offcer (VI) : Memberv) Director (Finance) : Membervi) Programme/Industry Director : Membervii) Director (VIC) : Member / Convenor Terms and References : The Committee will evaluate the recommendation of the State / Regional level Committee before Technically appraised the Project. The Committee will examine commercial viability of the project. The Committee will examine the collateral security or surety bond submitted by the implementing agency and recommended by the State / Regional level Committee. Mode of Sanction : Once the project up to Rs. 25.00 lakhs have been technically appraised by the Technically Appraisal Committee, the concern Industry/Programme Director will process the proposal and placed before the SFC either Khadi and VI as the case may be. Security for Release of fund : Surety Bond must be submitted against the release to the tune of 90% of the project cost of maximum upto Rs. 25.00 Lakhs for NEZ and 100% women artisan best institution/organisation and 75% of the project cost of maximum Rs.25.00 lakhs for others. The surety Bond must be register with the competent authority of the State the following points must be taken into account while submitting the Surety Bond to KVIC. 1. Resolution of the institution.2. Original Surety Bond duly stamped (Non-Judicial) as per the stamp Act of the State.
3. Original Valuation Report of the property of the Surety/ies from Government Registered valuer/Revenue Authority.
3. Original Blue Print/Lay out plan of the property of the Surety/ies duly approved by the competent Authority.
4. Original extract of record of rights certified by the Revenue Authority.
5. Original Non-encumbrance Certificate in respect of the Property/ies from a Govt. Pleader or from the Revenue/Competent authority certifying that the property is marketable and free from all encumbrance.
6. The Borrower should submit all extract from the revenue record evidencing that charge has been created on the revenue record in respect of the property/ies of the surety bond/s after sanction and before release of funds.
In addition to the surety bond the implementing agency must mortgage their assets i. e. machinery, building etc. to the Commission created from out of the RISC fund before the release of 3rd installment. However incase of the institution already enlisted with KVIC and carring out Khadi & VI programme and already having infrastructure land , building, etc. and also mortgaged the property to the Commission, if they desired to take up the RISC activity, they have to enhance the limit of EM created to the tune of RISC project and do not required to execute surety bond. Release of fund to state/Divisional offices of KVIC : After SFC approval of the proposal, the funds will be released as per the guidelines prescribed in the standing order No-1606
Mode of release of installment of funds to beneficiary institution :
1st installment for Building/Infrastructure : Maximum 15% of project cost.
2nd installment for Plant & Machinery for manufacturing and or testing facilities and packaging : Minimum 50% of project cost.
3rd installment for Raw material /new design, product Diversification, etc. : Maximum 25% of project cost.
4th installment for Skill upgradation & training and/ or Product catalogue : Maximum 10% of Project cost.
Note- 1st installment will be released on the basis of feasibility report of the field official and subsequent installment on the basis of utilisation certificate duly inspected by the field official of the State/Divisional office concerned and on satisfaction of the State /Divisional Director.
Stages of Programme implementation :
Identification of the cluster. Selection of a Cluster Development Agency. Technical feasibility by and expert or an agency. Project formulation. Approval of the project and release of funds. Monitoring and Evaluation.
OPERATIONALISATION AND PROGRAMME IMPLEMENTATION : For the purpose of establishing Rural Industry Service Centre (RISC), it may be ensured that the number of artisans / Village Industries units shall not be less than 25 individual artisans or 5 REGP units / VI Institutions / Societies for projects upto Rs.25.00 lakhs. The implementing agency / Organisation should have its own land where the Rural Industry Service Centre (RISC) will be established. The period of setting of project should not be more than 6 months. After submission of the proposal by the implementing agency to set up Rural Industry Service Centre (RISC), State / Regional Director shall conduct technical feasibility and place the proposal with his recommendations before State Level Committee. Technical feasibility may done either by DIC or by State Office or State Board. The funds shall be released based on the progress of work report received periodically from State / Regional Director and based on activities of the project and also within a specific time frame for timely completion of the project.
The State / Regional Director of the concerned state where the project is located shall ensure monitoring and evaluation and timely completion of project. After obtaining approval by the State Level Committee for setting up of project State/Regional Director will intimate to concerned Industry Programme Directors at Central Office of the Commission.
DIRECTORATE OF MARKETING Khadi and Village Industries Commission
' Gramodaya ',3, Irla Road, Vile Parle(West), Mumbai - 400 056. No.MKT/EXP/Incentive/policy/590-Part II/2003-04 4th October 2005
C I R C U L A R
Subject: 'Export Incentive Scheme' to assist exporters of KVI products – Reg. The Commission in its Meeting No.526th dated 24.02.2004 considered the proposal of Ministry of Commerce for extending "Marketing Development Assistance (MDA) to Exporters" and decided to launch an Export Incentive Scheme for exporters of KVI products which was circulated vide Circular No. No.MKT/ EXP /Incentive/ Policy/590-Part II/ 2003-04 Dated 17th March 2004.
A doubt has recently arisen whether there REGP units (both KVIC/KVIB's affiliated) are also entitled for these benefits. As a part of persistent effort to boost exports in the KVI Sector it has now been decided to extend the benefit of 'Export Incentive Schemes' to REGP Units also both KVIC & KVIB's affiliated in addition to the KVI Institutions under the KVI Sector.
The details of the scheme are as follows:- A. VISITS ABROAD FOR PARTICIPATING IN INTERNATIONAL TRADE FAIRS/EXHIBITIONS AND SALES –
CUM-STUDY TOUR ETC. (a) The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participating in "International
Exhibitions" will be provided 90% to and fro airfare by economy class.(b) The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participation in "Sale cum
Study Tour" abroad will be provided 90% to and fro airfare by economy class.(c) The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participating in "Sales cum
Study Tour " / Exhibitions/ Buyer Seller Meet etc. abroad, will be reimbursed 25% of the total approved cost with an upper ceiling of Rs.15,000/- per event, towards actual expenditure incurred on publicity in terms of bringing out product catalogue, brochure, hand outs etc.
(d) Assistance for visits abroad shall be applicable only in case of visits organized and sponsored by KVIC. Participation by individual units of their own shall not be considered for assistance.
B. EXPORT INCENTIVE FOR EXPORTS EFFECTED:
3.The Export incentive @ 5% of actual export realization on FOB value of exports will be extended to exporting KVI institutions/REGP units under KVI Sector as per terms and conditions blow:- (a) All export-oriented units/institutions under KVIC including the direct listed units of KVIC, KVIB and their aided
agencies, REGP Units enlisted with the Directorate of Marketing shall submit the export claims every year in the prescribed format (Annexure-A) and forward the same with supporting documents like G.R. forms/Shipping bills, Original bank certificate, Audited balance sheet etc. duly countersigned by the concerned State/Divisional Directors of the Commission. Guidelines for claiming export incentive are enclosed at Annexure – B.
(b) Directorate of Marketing shall examine the claims reckoning those with dues to be recovered from the Institution/REGP Unit against loans availed or any other recovery(ies).
(c) The claim (excluding recoveries effected ) shall be vetted by Director (Finance) and sanctioned with the approval of the competent authority in terms S.O.No.1606 dated 10.04.2002.
(d) Sanction Orders would be sent to the Director of Accounts who will disburse the incentive to the said institution/ REGP unit from out of G &M funds earmarked for the purpose after deduction of Commission's dues, if any.
(e) The assistance/support shall be extended only to KVI Institutions/REGP Units, KVIC/KVIB and their aided units which are "Enlisted with KVIC" for the purpose as per Annexure-III.
4.This supercedes all earlier circular on the subject and comes into effect from 1st. October 2005.
This issues with the approval of Chief Executive Officer.
Sd/-
Preamble
Khadi, the fabric of freedom, has been a source of livelihood to a large number of spinners, weavers and other artisans spread across the country living in the rural as well as urban areas. Though handcrafted characteristic is the USP of Khadi, use of appropriate technological implements plays a vital role in achieving better productivity and quality besides reducing drudgery. Sustainability of traditional khadi industry is largely dependent on provision of facilities so that the artisans’ productivity is enhanced and competitiveness of the activity is maintained.
The instant scheme envisages a comprehensive support to around 200 Khadi Institutions in order to make khadi industry more productive as well as competitive and also strengthen its potential for creation of qualitative employment.
Objective
The primary objectives of this scheme are to:
make khadi industry more competitive with more market-driven, profitable, production and sustained employment for khadi artisans and related service providers by replacement of obsolete and old machinery and equipment and repairs to/renovation of existing/operational machinery and equipment;
extend an evenly balanced and need-based support in all areas of Khadi activities viz. production, distribution, promotion and capacity building;
provide appropriate incentives to shift to market driven approach.
the scheme would cover activities up-to cloth stage and may not venture into readymade garments.
Target Beneficiaries
The targeted beneficiaries of the scheme would be spinners, weavers, pre-weaving artisans, washer men, dyers and printers, workers (karyakartas) of the khadi institutions, manufacturers of tools and equipment, common service providers engaged in khadi industry associated with selected khadi institutions from among the 200 Khadi institutions affiliated to KVIC / State or UT KVI Boards covering all categories of institutions as detailed below:
Criteria for Selection
The implementing agency has to be a directly aided institution of KVIC or that of State Khadi & V.I. Board (KVIB).
The implementing agency has to be an 'A+', "A', 'B', 'C' and SC/ST institution classified as such by the KVIC and also those registered in NER.
The implementing agency has to have a standing in the field of Khadi work for minimum period of last 20 years and be engaged in implementing Khadi programme in a composite manner, i.e., spinning, weaving and marketing of khadi;
The scale of the activities of the implementing agency or group of implementing agencies in the selected scheme should be as follows:-
A minimum of 300 full time artisans should be registered with the implementing agency up to 31.03.2006. For N.E. States – 150 full time artisans;
Production and/or average sales turn over should be at least of Rs.50.00 lakhs per annum in the last three years (up to 2005-06). In the case of North-East States – Rs.25.00 lakhs.
Adequate land or buildings should be available with the implementing agency so as to accommodate the infrastructure envisaged in the scheme.
The implementing agency should be able to contribute its share of financial contribution as indicated in the scheme.
The implementing agency should replace the spinning and weaving implements with improved spinning implements (8-spindle N.M.C./improved basins etc.) and weaving implements (improved looms/dobby/jacquard etc.).
The implementing agency should employ one trained supervisory spinning worker over every 50 N.M.C./basin and trained supervisory weaving worker so that the quality of yarn and Khadi is not compromised in the interest of marketability of the finished product.
The implementing agency shall draw its raw-material requirement from the nearest Central Sliver Plant of the KVIC or its local godown. In case of silk, it should be obtained from the raw material bank operated by Central Silk Board and other Government or quasi -Government agencies.
Category A & A+ B C SC/STs NER
No. of institutions to be covered 45 45 45 45 20
The institutions should have reported positive financial result for the last 5 years, availed bank finance at least for last three years continuously and capable to procure additional bank finance, except the newly registered SC/ST institutions and those in NER.
The artisans to be covered under the scheme should be brought under the umbrella of social security such as Janashree Bima Yojana and Artisans Welfare Fund Trust of the implementing agency.
The institutions should have taken initiatives in adopting science and technology development and research and development projects by engaging qualified and experienced personnel as prescribed by KVIC.
The institution has to submit an action plan clearly committing that during the scheme intervention it will double the production and ensure that the earning of artisans increases two fold of their present earning.
The institution will also submit an undertaking to switch over to MDA Scheme when implemented.
The institution will have to clearly indicate that they will conduct periodical testing of their product to ensure quality, in the manner prescribed separately by KVIC.
Intervention / Support Measures
Introduction of new technology and reduction in drudgery in pre as well as post weaving processes;
Introduction of need-based dyeing and printing facilities;
Production of market-oriented khadi products upto cloth stage, with higher productivity and cost competitiveness; and
Market promotion as well as capacity building at various levels and aspects in the functioning of Khadi institution and also engagement of expert manpower for proper implementation of the scheme.
Scheme Coverage
The Scheme will cover a total of 200 Khadi institutions encompassing all categories of institutions, as mentioned under “para III - Target Beneficiaries” so as to maintain inclusive growth of khadi sector.
While selecting the institution for implementation of the scheme, it will be ensured that the scheme spreads all over the country reasonably evenly. However, Khadi institutions in the less developed States and backward States will get assistance on preference.
In the same manner, Khadi institutions while selecting artisan beneficiaries will target their coverage in such a manner that the socially backward and weaker sections of the society are adequately represented. The representations at least will be SC – 15%, ST – 8.2%, Minorities – 15% and Women – 30%. Detailed records in this regard will be maintained in each assisted institution and reports furnished regularly to KVIC.
Financial Assistance
The following Table illustrates the pattern of financial assistance under the Scheme:
Sr. No. Component
Funding pattern under the scheme
(of total cost)
Category of Khadi institutions
Govt. Grant (%)
Institution’s contribution (%)
1Replacement of charkhas and looms
(Average cost – Rs. 12 lakh per institution).
A+, A 75 25
B & C
SC, ST 90 10
NER
2Service Centre for warp units ready to use warps for weaving, Post loom facilities, product testing laboratory etc.
(Average cost – Rs.9 lakh per SC).
A+, A 75 25
B & C
SC, ST 90 10
NER
3Product Development Design Intervention and Packaging
(Average cost – Rs. 2 lakh per institution).
A+, A 75 25
B & C
SC, ST 90 10
NER
4Market Promotion Assistance
(Average cost – Rs. 8 lakh per institution).
All categories 90 10
5Capacity Building Measures
Average cost – Rs. 5 lakh per institution).
All categories 90 10
6Techno-managerial support
Average cost – Rs. 5 lakh per institution).
All categories 90 10
7Reporting, documentation,
studies etc.
(Lump sum Rs. 1 lakh).
All categories 100 -
It is reiterated that the scheme is restricted for activities up to cloth stage only.
Distribution of Charkhas
The equipment – charkhas, looms procured and supplied to spinners/weavers shall be installed in their homes or in a common work shed, as relevant or applicable in each case. The ownership of Charkhas and Looms would be given to artisans and institutions would continue to extend all support to the artisans. The institution shall not pass the cost of charkhas/looms on to the artisans nor shall it build in any cost element on this account in its cost chart of khadi production. The distribution of charkhas would be made through a tripartite Agreement (MOU) to be entered amongst the KVIC, the khadi institution and the Artisans so as to ensure proper the utilization of the implements in the implementation of Khadi programme. While the artisans will not misuse the charkhas, at the same time, the institutions have to offer all backward forward-linkages such as supply of raw material, production of finished goods against payment of proper wages and arrangements for maintenance, overhauling, etc. Since the implements are to be given to the artisans free of cost, in case they cease to associate with Khadi activity, they should return implements to the institution for their re-distribution to some other artisan. The institution would be free to forfeit the implements from such artisans as have either stopped production or failed to ensure proper upkeep of the implements and re-allocate these charkhas to other willing artisans/weavers. The above requirements will be incorporated in the proposed MOU.
Implementation sequence
KVIC Central Office will arrange to issue an indicative target of institutions State/Divisional Office-wise to be covered under the Scheme.
State/Divisional Offices of KVIC will identify as many number of institutions based on the prescribed criteria and submit the same to KVIC Central Office.
A Steering Committee to be chaired by CEO, KVIC will examine the proposals submitted by the field offices and extend its administrative approval to go ahead.
The institutions will arrange to develop detailed action plan along-with financial implication and submit to State/Divisional Office of KVIC.
State/Divisional Offices will examine the proposal through a State Level Standing Committee and forward the proposal to KVIC Central Office for seeking financial approval.
Financial approval will be extended with concurrence of Financial Advisor and Chief Executive Officer, KVIC. The release of fund will be made with usual condition for release of programme fund to implementing agencies / institution.
The institution will maintain a separate account and utilize the fund with the prior concurrence of State Level Standing Committee. The institution will prepare detailed expenditure budget of each item / aspect and utilize fund with the concurrence of Standing Committee to be headed by Zonal Dy. CEO, KVIC.
State/Divisional Office, KVIC will assist the institution in the engagement of suitable personnel as envisaged in the scheme in a transparent manner in accordance with the specific qualification and experience prescribed by KVIC.
Implementing institutions will submit monthly progress report to State/ Divisional Office in the prescribed format and submit the same to the State Level Standing Committee.
State/Divisional Office will assign one official as Nodal Officer to extend all support and guidance to the institution.
KVIC will arrange to study/ evaluate the programme, implemented by the institutions, every six month.
KVIC will also arrange to conduct an impact study through a professional agency and submit its report to the Ministry of MSME, after (2) two years of its commencement.
Scheme Management: Physical as well as Financial
Implementation of the scheme would be directly monitored / supervised by a Nodal Officer assigned by KVIC. He will submit monthly reports in respect of production, sales and employment in prescribed formats.There shall be a “State Level Standing Committee” consisting of the State Director of KVIC; CEO, State KVIB; representative of the Lead Bank of the State; Chairman, State Level Khadi Federation and a local expert in textile and allied profession.
The Scheme will be administered at the Central Office level of KVIC by a Steering Committee headed by CEO, KVIC. Joint Secretary, MoMSME and Financial Advisor, KVIC will be the Members of the Committee. Dy. CEO (Khadi), KVIC will act as its Convener.
Scheme will be sanctioned by the Steering Committee and release of funds will be made with the concurrence of Financial Advisor, KVIC and Chief Executive Officer, KVIC.
The first installment of 50% of the project cost will be released after compliance of necessary conditions. The balance 50% will be released only after submission of utilization certificate rendered by a professional Chartered Accountant along with a physical verification report of work by an official of KVIC not below the rank of Assistant Director, KVIC.
Linkages with Existing Schemes
Since the Scheme for Enhancing Productivity and competitiveness of Khadi industries and artisans is an extension of the concept of SFURTI scheme, the institutions which are already implementing or identified for implementation of SFURTI scheme shall not be selected for providing assistance under this scheme.
Further, the institution implementing this scheme will not be considered eligible for assistance under the other schemes of KVIC like PRODIP etc.
Scheme Evaluation
The performance of the Scheme will be got evaluated through an independent agency after (2) two years of its commencement so as to bring in further improvements in its implementation and assess the progress.
INTRODUCTION
Khadi has been a source of livelihood for more than 8.5 lakh persons who are engaged in the activity as spinners, weavers and artisans spread across the country. Khadi sector represents the continuity of age-old Indian heritage of hand spinning and hand weaving and reflects the socio-cultural tradition of the khadi artisans. The Government of India has been following a policy of promoting and encouraging the khadi sector through a number of policies and programmes. A growing need has been felt to facilitate and empower khadi artisans to chart out a sustainable path for growth, income generation and better work environment so that they are able to have a right working atmosphere and better ambiance to enable them to carry out their spinning and weaving work efficiently. The Workshed Scheme for Khadi Artisans (WSKA) is an attempt to facilitate the development of khadi spinners and weavers by way of providing them financial assistance for construction of worksheds, on a pilot basis.
OBJECTIVES OF THE SCHEME
To provide better ambiance by providing a better workplace to enable them to carry out their spinning and weaving work efficiently.
To provide more storing and working space for housing slivers, raw material, implements and accessories, dobby, jacquard yarn, cloth etc.
To help improve efficiency productivity of the spinners through the electrical connection and lighting to the workshed.
ASSISTANCE UNDER THE SCHEME
Financial Assistance will be provided to those khadi artisans who belong to BPL category. Assistance for construction of worksheds will be provided through the khadi institutions with which these khadi artisans are associated and the quantum of assistance will be as under:
Component Area per unit Amount of AssistanceConstruction of
workshed20 Square meters (approximately)
Rs.25,000/- or 75% of the cost of the workshed, whichever is less.
The additional requirements of funds over and above the financial assistance provided by the Government of India, to meet the cost of Workshed should be contributed by Khadi Institutions without insisting on any contribution from the beneficiaries, who belong to BPL category and may not be able to make such contribution. In case of individual Worksheds, the khadi institutions can also release the additional funds assessed for construction of workshed out of the accumulations in Artisans Welfare Fund lying to the credit of the beneficiary with State Level Artisan Welfare Fund Trust. The financial assistance to be provided by the Government will go to the institutions (with which the beneficiaries of the scheme are affiliated) which will be responsible for the construction of worksheds (either directly or under their supervision) and Khadi and Village Industries Commission (KVIC) will supervise the activities.
Cost of land will not be part of the project cost. Financial assistance will be for the purpose of construction of workshed only and will not be used to purchase land. In case of individual beneficiaries, the right title of the land must vest with the beneficiary and the institution has to ensure this before release of assistance. It will be the responsibility of the institution to whom the selected beneficiaries are attached to take care of the maintenance of the worksheds.
Wherever feasible, financial assistance may be provided to a group of (minimum 5, subject to a maximum of 15) khadi artisans who individually fulfill the eligibility criteria for this scheme, for the construction of Group Worksheds. These Group worksheds can be constructed in the land owned by the Khadi institution. In case of these Group Worksheds, the area will be at least 15 sq.m. per beneficiary of the group and the financial assistance to be provided by the Government will be limited to Rs.15,000 per beneficiary of the group or 75% of the total cost of the project, whichever is lower. This land will be leased out to the individual beneficiaries (in the group) for an initial period of ten years, which may be extended after reviewing the requirements, after the period.
MODALITIES FOR IMPLEMENTATION OF THE SCHEME
KVIC will ensure the minimum acceptable standards for the construction of worksheds, and identify and select the khadi institutions that will implement the scheme after ensuring that at least 50 per cent of the selected institutions
are in those States which contribute maximum khadi production or have the largest number of spinners and weavers registered.
The selected institutions will submit the list of beneficiaries (spinners and weavers), who will be provided with the financial assistance for construction of worksheds, to KVIC through the KVIC State Director concerned. The list will be accompanied with a proposal containing the details of the extent and nature of workshed and the cost estimates which should correspond to either the CPWD rates or the State PWD rates, whichever are lower. The proposal should also clearly indicate the extent of financing that would be contributed by the Khadi institutions either from their own funds or raised through financial institutions / banks, Artisans Welfare Fund Trust etc.
KVIC will examine the proposal and with the concurrence of its finance wing, will release 50 per cent of the entitled financial assistance under the scheme to each khadi institution as first installment after satisfying themselves that the contribution from the institutions has been received for the project in respect of each beneficiary. The financial assistance so released will be kept apart in a joint bank account operated by the institution and KVIC for the purpose and it would not be allowed to be mixed with the other funds of the khadi institution. On satisfactory completion of the construction of the workshed (up to a level as prescribed by KVIC separately), the balance 50 per cent of the entitled financial assistance can be released by KVIC to the institution. The completion of the work would have to be certified by the State Director of KVIC. Utilization Certificate in the prescribed format should be furnished by KVIC to the Ministry along with the demand for release of funds.
The scheme will be got evaluated by KVIC through an independent reputed agency after three years of its commencement. Comments and recommendations should be forwarded to the Ministry before considering further release of funds in the fourth year.
KVIC will ensure that the funds are earmarked as provided in the scheme for utilization by and sanction to the beneficiaries belonging to Scheduled Castes (minimum 15 per cent), Scheduled Tribes (minimum 8.2 per cent), Minorities and women (minimum 30 per cent) and North Eastern Region (minimum 10 per cent) and these are released to institutions by obtaining full details from the implementing institutions along with a certification by the State Director concerned.
The khadi institution will be directly responsible for ensuring full, proper and effective utilization of the financial assistance provided under the scheme for the benefit of the spinners and weavers and will give an assurance to KVIC that they would be responsible for any deviation or diversion or misuse of the financial assistance.
KVIC will verify the construction in all cases and indicate the same in the quarterly progress report, to be submitted to the Ministry. KVIC will also maintain the database of all the details of beneficiaries and construction activities, which will be reviewed by KVIC every quarter.
KVI Boards of State/Union Territories
Sr
NameAddressPhoneFax,Email & Website address (if any)1Andhra Pradesh KVI BoardGrama Parishramala Bhavanam, No.10-4-2, Humayun Nagar, Hyderabad - 500 02823450508
23319272(040) 2339 7353(040) 2345 [email protected]@yahoo.com www.apkvib.gov.in2Andman and Nicobar Islands KVI BoardUdyog Parisar, Middle Point, Port Blair - 744 101233345232395(03192) 230499(03192) [email protected] [email protected] 3Arunachal Pradesh KVI BoardUdyog Sadan, Ground Floor, Itanagar - 791 11122154672212776(0360) 2211815(0360) [email protected] 4Assam KVI BoardChandmari, Guwahati - 781 00326645442664789(0361) 26647895Bihar KVI BoardMahesh Bhavan,Gandhi Maidan (East),Patna - 800 00426737252302414 (0612) 2302414 6Chandigarh KVI Board39,Industrial Area,Phase-II, Chandigarh - 160 00227411422652118(0172) 27414617Chhattisgarh KVI BoardNear City Station, Jeevan Bima Marg, Pandari, Raipur-49200122128462221204(0771) 24267078Delhi KVI BoardOld ITI Building 1,Canning Lane, Kasturba Gandhi Marg, New Delhi - 110 0012378233623381951(011) 23384510(011) [email protected]
http://dkvib.delhigovt.nic.in 9Goa,Daman and Diu KVI BoardJanta House,2nd Lift,2nd Floor Panaji, Goa - 403 00122214102221452(0832) 222249410Gujarat KVI BoardGram Nirman Bhavan, Juna Wadaj, Ahmedabad - 380 0132755634327559898(079) 2755744411Himachal Pradesh KVI BoardCleave Land, Choura Madan, Shimla - 171 00428027242652407(0177) 280272412Haryana KVI BoardSCO No.841, Kalka Road NAC, Manimajra,Chandigarh - 160 10127305302733270(0172) [email protected] http://harkhadi.nic.in 13Jammu and Kashmir KVI BoardOld Secretariat, Srinagar - 190 001Old Secretariat,Jammutawi -180 0010194-24529400194-24529410194-24551780191-25629600191-25652440191-2542187(0194) 2474789(0191) 254847814Karnataka KVI Board10,Jasma Bhavan Road, Bangalore - 560 05222266852(080) 2225853115Kerala KVI Board"Gramasoubhagya", Court Compound, Vanchiyoor,Thiruvananthapuram- 695 03523275742462183(0471) [email protected] www.keralakhadi.org16
Lakshadweep KVI BoardKavaratti Island - 682555263394262396(04896) 26339417Madhya Pradesh KVI Board74, Area Hills, Near Kendriya Vidyalaya, Bhopal - 462 01152216192553448(0755) [email protected] 18Maharashtra KVI Board9/12,Manohardas Street, Bhatia Balrakshak Vidyalaya, Fort, Mumbai - 400 0012269441722696720(022) [email protected] 19Manipur KVI BoardNorth to District Collector Office, Lamphelpat, Imphal(W) - 795 00422221452414569(0385) 241456920Meghalaya KVI BoardLower Lachumiere, Temple Road, Shillong - 793 00122275592225563(0364) 222556321Mizoram KVI BoardDr. Jairema Building, Zarkawt, Aizwal, Mizoram - 796 00123426252342460(0389) [email protected] www.mizokvib.com 22Nagaland KVI BoardNear New Secretariate Complex, Kohima - 797 00122700112270013(0370) 227001323Orissa KVI BoardKharvela Nagar, Unit - III, Bhubaneswar - 751 0012501862(0674) 250355224Punjab KVI BoardSCO.No.2428-30.Sector - 22-C Chandigarh - 160 02227010262705177(0172) 270517725Pondicherry KVI Board
Plot No. 1-2,Kamaraj Salaj, New Saram,Pondicherry - 605 01322415702241708(0413) 2241570(0413) 224170826Rajasthan KVI BoardJawaharlal Nehru Marg, Near Telephone Exchange, Bajaj Nagar Circle, Jaipur - 302 017270593527051972705198(0141) 270651027Sikkim KVI BoardDeorali, Gangtok, EastSikkim - 737 102280944(03592) 28094428Tamil Nadu KVI BoardKuralagam, 5th Floor,Chennai - 600 1082567402025340556(044) [email protected] 29Tripura KVI BoardColonel Chowmuhani, Dist. Tirupa (West), P.O. Agartala - 799 00122246382223386(0381) 222338630Uttar Pradesh KVI BoardGramodyog Bhavan, 8, Tilak Marg, Lucknow - 226 00122380712208321(0522) 2208243www.upkvib.com31Uttaranchal KVI Boad21/9, E.C. Road, Dehradun - 248 00126663772714971(0135) 2666380(0135) 2712914
