Department of Delhi Khadi & Village Industries Board

The Delhi Khadi & Village Industries Board (DKVIB) was constituted on 1^st May’1983 by extending Himachal Pradesh Khadi & Village Industries Board Act 1966, to the then Union Territory of Delhi, presently known as National Capital Territory of Delhi. The Board starts it’s independent working since 1^st January, 1984 by implementation of schemes of the Khadi & Village Industries Commission. The Board has been reconstituted from time to time. The present body has been reconstituted by the Lt. Governor of Delhi on 30 July, 2009 with Sh. Veer Singh Dhingan, MLA as Chairman. The maximum strength of the Bord is 09 (Nine), and the present constitution of the Board is as under :-

To implement the developmental schemes under the preview of Khadi & Village Industries Commission as well as Govt. of NCT of Delhi. The operational jurisdiction of Board is as an area of NCT of Delhi only.

· To sanction and disburse the funds to the beneficiary under the ambit of foregoing developmental schemes and recoveries of loan.

· To organize the seminars, exhibition and publish the periodicals for the promotion of Khadi & Village Industries and Cottage Industrial Activities in Delhi.

· For ensuring the genuineness and for granting certificates to the units financed by the Board under its developmental schemes.

The Board is getting 100% Grant-in-Aid to meet its Administrative & Establishment expenditures from the Government of Delhi.

The Board implements following employment generation programmes in NCT of Delhi with the support of KVIC, Govt. of

India

and Govt. of NCT of Delhi

Rajiv Gandhi Swavlamban Rozgar Yojna has been designed, developed and promoted by the Delhi Khadi & Village Industries Board, with the help of Government of NCT of Delhi, to provide the employment opportunities to the unemployed youths, artisans, trained professionals, skilled technocrats and entrepreneurs by promotion/expansion of permissible industries, professions, tertiary and service sector in the UT of Delhi.

(a) Any one of the School/College dropouts, Individual entrepreneur, Trade Professionals, Artisan, Passed out candidates from any technical/professional institute recognized by the Government and its authorized undertaking bodies, without further training.

(b) Small-Scale Industrial units which have total investment of plant, machinery and equipment not exceeding the ceiling prescribed for small scale units by the Central Government from time to time and who are located within the National Capital Territory of Delhi, are also eligible for financial aid/loan.

Financial aid as loan under these rules may be granted to the eligible projects pertains to any of the following groups/sector:-

Tertiary Sector (Trade, Transportation, Hostels, Restaurants without Liquor and Meat etc.)

Services Sector: (Under the ambit of various Terms & Conditions, provisioning of local bodies and Delhi Master Plan.)

The quantum of loan granted under this scheme, to proposed and functioning units shall not exceed Rs. 3,00,000 provided that concerned entrepreneur shall make at least 10% contribution of amount demanded as loan from the DKVIB. In case of weaker sections i.e. SC/ST/OBC/Ph.H. /Women/Ex. Servicemen/M.C., only 5% contribution of entrepreneur is required.

Govt. of NCT of Delhi provide subsidy @ 15% of the project cost subject to the ceiling of Rs. 7,500.00 per entrepreneur. In case of more than one entrepreneur joining together and setting up a project under partnership, subsidy would be calculated for each partner separately, @15% of his share in the project cost, limited to Rs. 7,500.00 each partner. Subsidy component would be adjusted to the borrower’s loan account after a period of two years from the date of disbursement of loan. Subsidy component would be recovered from the borrower along with 18% penal interest in cases where the loan amount has been found not utilized for the purpose for which it was released.

(a) Every loan with interest thereon shall be repaid in full within 5 years in equal quarterly installments. The recovery of loan may be started after a gap of 12 months from the date of release of loan amount. However, interest on released amount will be recoverable form the first quarter, from the date of release of loan amount.

(b) To ensure timely recovery, borrower shall provide equal nos. of post dated cheques for quarterly installments of Principle amount including interest due as on date of installment fixed by the Board. The Borrower shall ensure for timely encashment of each and every cheque. In case of any default, DKVI Board will be entitled to take action against him / her and/or sureties as prescribed under the law.

The loan granted under this scheme shall bear interest @ 10% pa this is subject to change as per decision of the Govt. of NCT of Delhi from time to time.

The borrower shall utilize the loan for the specific purpose for which it is advanced within three months. in case of non-utilization/mis- utilization of funds the DKVI Board will be at liberty to recover entire amount along with 18% interest from the borrower.

Under this scheme the following arrangements are proposed for extending marketing support to the beneficiaries who avail financial assistance under this Scheme.

DSIIDC/ Cooperative Stores can get the products manufactured by the selected entrepreneurs and market the same in their own brand name.

Allowing such entrepreneur to participate in trade fairs particularly in Delhi Pavilion and in the exhibitions organized by Board or any other Govt. Organization.

Issue of certificate to the beneficiary unit to get the recognition in the market/society.

The applicant shall apply to the DKVI Board on the prescribed loan application form. The loan application can also be downloaded from the website of Board and can deposit along with all essential documents and a fee Rs. 20/- as cost of loan application form.

Under Rajiv Gandhi Swavlamban Yojna industrial/professional unit can be set up in any area comes under preview of Govt. of NCT of Delhi. In residential/non-confirming areas loan for those professional/industrial activities will be provided which are permitted under the Master Plan of Delhi for those areas. To set up a unit in non-confirming areas, the applicant will also submit NO OBJECTION CERTIFICATE of HIGH POWER COMMITTEE constituted by Industries Department, Govt. of Delhi and Municipal Corporation License (MCL), for the respective industry. In the case of professional / commercial activities the applicant should also submit Registration Certificate from MCD for the concerned trade.

The applicant has to deposit the complete application alongwith required documents in the office of the Board. The Board will examine the application and conduct physical verification of the site if the application and other documents are found in order. The applicant is to be informed within 15 working days about the status of his application whether it will be processed for consideration of sanction or if there is any deficiency, the same may also be specified and informed to the applicant. In case the application is considered for sanction, the applicant will be called for interview before the Loan Sub-Committee and after the sanction of the case by the Committee, the case will be the processed for acceptance of Sureties, Legal documents and thereafter release of funds will be done.

The Prime Minister Employment Generation Programme (PMEGP) scheme is controlled by Ministry of Micro, Small and Medium Enterprises, Govt. of India. This scheme is to be implemented by Khadi & Village Industries Commission (KVIC), Govt. of India as single nodal agency at National Level. At State Level, the Scheme is to be implemented by State Khadi & Village Industries Boards (KVIBs) in rural areas and by District Industries Centres in Urban areas. In Delhi, the DKVIB is state agency for the scheme.

· The maximum cost of project/unit admissible under manufacturing sector is Rs. 25 Lac.

· The maximum cost of project/unit admissible under business / service sector is Rs. 10 Lac.

Categories of beneficiaries under PMEGP/Area/ Location of Project unit	Beneficiary’s contribution(of project cost)	Rate of Subsidy (of project cost)		Term loan
	Beneficiary’s contribution(of project cost)	Urban	Rural	The balance amount of the total project cost will be provided by Banks as term loan.
General Category	10%	15%	25%
Special Category (including SC/ST/OBC/Physically Handicapped, Minorities/ Woman/Ex. Servicemen etc.)	05%	25%	35%

For setting up of project costing above Rs.10 Lac in the manufacturing sector and above Rs. 5 Lac in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.

· Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.

Note: Existing Units (under PMRY, REGP or any other scheme of Government of

India

or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of

India

or State Government are not eligible.

A certified copy of the caste/community certificate or relevant document issued by the competent authority in the case of other special categories is required to be produced by the beneficiary to the concerned branch of the Banks along with the Margin Money (subsidy) Claim.

A certified copy of the bye-laws of the institutions is required to be appended to the Margin Money (subsidy) Claim, wherever necessary.

Project cost will include Capital Expenditure and one cycle of Working Capital. Projects without Capital Expenditure are not eligible for financing under the Scheme. Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank’s Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be.

Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental work shed/workshop to be included in the project cost calculated for a maximum period of 3 years only.

PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The ‘family’ includes self and spouse.

The beneficiary can obtain Loan Application form from the office of DKVIB and KVIC, K Block, Chaudhary Building, Connaught Place, New Delhi-110001. The application form can also be downloaded from website http://dkvib.delhigovt.nic.in, www.kvic.org.in. The complete application form will be deposited in the office of DKVIB and Khadi & Village Industries Commissioner Office of Dy. Commissioner and office of Commissioner of Industries.

The KVIC/KVIB/DIC officer, after ascertaining the applications will forward the same to the respective District Level Task Force Committees for evaluation and recommendation to the Board.

Normal rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution

All activities, permissible under MPD-2021 but not covered under negative list of KVIC are eligible for finance under PMEGP.

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/Cigarette 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 Polythene 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

Under PMEGP scheme, complete application can be deposited at DKVIB office, KVIC State Office and concerned Dy. Commissioner’s Office. After receiving of application, the Board will forward these applicants within 15 working days to the Distt. Coordinator in the office of the concerned Dy. Commissioner for placing these applications before the Distt. Level Task Force Committee (DLTFC) where the applicant will be called for interview . After the recommendation of the DLTFC, the application will be forwarded to the concerned bank for consideration and sanction of the case. The bank will disburse the amount under this scheme.

Under PMEGP, the entrepreneur have opportunity to use the retail outlets setup by KVIC, DKVIB and also avail the facility in participating different fairs organized by KVIC sectors and other Govt. organizations.

To provide marketing support, the DKVIB itself running two Departmental Sales Outlet. One at Delhi Sachivalaya, another at its office premises i.e. Udyog Sadan, 419, Patparganj, Delhi.

Public relation Officer/Development Officer is available daily for inquiry about the scheme.