KHADI AND VILLAGE INDUSTRIES BOARD

Constitution of the Board

The Andhra Pradesh Khadi and Village Industries Board was constituted under the Andhra Pradesh State Assembly Act No.IV of 1959 for the Development of Khadi and Village Industries with focus of creating employment in the rural areas.

Source of funding

• Grant –in – aid from State Government

APKVIB receives Grant-in-aid as Revenue Expenditure from the State Government to meet the Expenditure on Salaries and Contingencies for running & maintenance of the Office of APKVIB.

• Funds From Khadi & V.I. Commission (KVIC)

KVIC provides funds for developmental activities i.e., financing the societies / Entrepreneurs by way of loans and grants for establishment of  KVI units and also for imparting  training for youth from KVIC, a Government of India’s Organization.

Schemes and activities:-

 Prime Minster’s  Employment Generation Programme (PMEGP)

• The Govt. of India has introduced a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging 2 schemes that were in operation till 31^st March 2008 viz., PMRY & REGP during the year 2008-09.
• This is a Flagship programme of Department of MSME, Government of India for Generation of employment opportunities through establishment of micro enterprises in Rural as well as urban areas in the country.
• This Programme is being implemented by three agencies viz., APKVIB, KVIC & DICs.

Guidelines of the PMEGP Scheme

• Cost of the Project

The maximum Project Cost of the Unit admissible under manufacturing sector is Rs.25.00 lakhs and under service sector is Rs.10.00 lakhs.  Land value shall not be included in Project Cost.

Levels of funding under PMEGP:

Qualification:

• • The Entrepreneur shall possess 8^th standard pass for setting up of projects costing more than Rs.10.00 lakhs under manufacturing sector and above Rs.5.00 lakhs under service sector.

Negative List

The following list of activities will not be permitted under PMEGP for setting up of micro enterprises/projects/units.

• Any industry/business connected with Meat(slaughtered), i.e., processing, canning and / or serving items made of it as food, production/manufacturing or sale of intoxicant items like Beedi/Pan/Cigar/Cigerette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation/ producing tobacco as raw materials, tapping of toddy for sale.
• Any industry/business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. Sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry like Pisciculture, Piggery, Poultry, Harvester machines etc.
• Manufacturing of Polyphone carry bags of less than 20 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems.
• Industries such as processing of Pashmina Wool and such other products like hand spinning and hand weaving, taking advantage of Khadi Programme under the purview of Certification Rules and availing sales rebate.
• Rural Transport (Except Auto Rickshaw in Andaman & Nicobar Islands, House Boat, Shikara& Tourist Boats in J&K and Cycle Rickshaw)

Identification of Beneficiaries

As per the Online System introduced with effect from 1-7-2016, the entrepreneurs/ applicants, who are willing to establish the units, can fill the application available at the website i.e., “www.kviconline.gov.in” and upload the required documents. All such applications will be scrutinized by the  District Officers of APKVIB in respect of fulfilling the criteria such as Industry, Per Capita Investment, Own Contribution, Rural Area and Negative List. All eligible applications will be forwarded to the District Level Task Force Committee (DLTFC) constituted with the following members headed by the Dist. Collector.

• District Collector                                                    –           Chairman
• PD DRDA/EO, Zilla Panchayat                           –           Vice-chairman
• Lead Bank Manager                                               –           Member
• Representative of KVIC, KVIB and DIC             –           Member
• Representative of NYKS/SC/ST Corporation    –           Invitee
• Representative of MSME-DI/ITI/Polytechnic  –           Invitee
• Representative from Panchayats                           –           3 Members

(To be nominated by Chairman/Dist. Magistrate/Dy. Commissioner/Collector by rotation every year)

• Director RSETI/RUDSETI                                            –           Member
• General Manager, District Industries Centre             –           Member/Convener

Sanction of loan by the Banks under PMEGP Scheme

• The District Officers of APKVIB shall forward the applications selected by the DTFC to the respective banks for sanction of loan.
• All Nationalized Banks and Private Banks approved by State Level Monitoring Committee can sanction Finance to the extent of 90% of the Project Cost in case of General Category of Beneficiary/ Institution and 95% in case of special category of the beneficiary/ Institution and disburse full amount for setting up of the unit/project.
• The Banks shall release the 1^st installment of loan to the entrepreneur after EDP Training, not less than to the Margin Money amount being released by the KVIC.

Entrepreneur Development Programme (EDP)

• The entrepreneur shall undergo training namely Entrepreneur Development Programme (EDP)after sanction of loan and before release of 1^st installment of loan sanctioned by the Bank.
• The KVIC has identified the training institutes for imparting EDP training to the entrepreneurs for 10 days.
• The KVIC will reimburse the expenditure for conducting the EDP Training directly to the training institutions.

Release of Margin Money by KVIC

• 25% of Project cost for General Category.
• 35% of Project Cost for SC/ST/Minorities/OBC/ Women/ Ex-Ser/PHC.
• The Banker has to upload the information regarding the sanction, EDP training and release particulars along with documents in the KVIC website.
• The KVIC, Mumbai will scrutinize the said documents and validate the subsidy claim and upload to the Corporation Bank portal.
• Corporation Bank, Mumbai will release Margin Money to the financing banks who shall keep the same in the shape of T.D.R. for 3 years (Middle ended subsidy) in the name of Beneficiary/Institution. .
• No Interest will be paid on the TDR and no Interest will be charged on the Loan Disbursed to the Entrepreneurs by the bank on the corresponding amount of TDR.

TARGETS & ACHIEVEMENTS

                                                              2018-19   (Rs. In lakhs)

Key Contacts:-

Availability of information on the following subjects can be obtained from our Officers listed below.

For Industrial Training Information:-

The Names designation and other particulars of the Assistant Public Information officer/Public Information Officer/Appellate authority to District Level.