The Government is leaving no stone unturned to make Khadi and Village Industries Commission (KVIC), result oriented and productive, Union Minister of State, MSME, Giriraj Singh said recently in Parliament.

The steps taken by the Ministry to improve KVIC include e-office system, online submission of application, e-governance and interest subvention for the bank finance etc. “We have proposed steps to augment organizational capacity to meet requirements for implementation of the schemes. This will extend benefits to KVIC units.”, Singh said in Rajya Sabha on December 7, 2016. He was replying to a question asked by Sanjay Seth, Samajwadi Party MP from Uttar Pradesh.

He added that the steps taken encompass administrative as well as operational aspects of KVIC, a nodal agency under Ministry of MSME which works towards welfare of Khadi and Gramodyog.

Herewith the salient features of Minister’s reply…

A facility has been created in the official website of KVIC, to replace postal communication with digital communication rendering the inter-office communication instantaneous and retrievable through a digital platform.
To reduce the paperwork and save time usually caused in movement of files, KVIC has started comprehensive plan to introduce e-office system. The training of officials have been completed and the piloting of the system has been initiated in Central Office, KVIC, Mumbai.
KVIC have also issued Request for Proposal (RfP) seeking bids for implementation of e-governance in KVIC. The bids received from the parties are under finalization. The implementation of e-governance system will make KVIC to attend all financial/ accounting/ budgeting/ administering the schemes of Government on a digital space.
To bring transparency and expedite disbursement of Margin Money subsidy under Prime Minister’s Employment Generation Programme (PMEGP) scheme, KVIC has introduced online submission of application by the prospective beneficiaries and the payment of Margin Money subsidy is directly made into the beneficiary account through Direct Benefit Transfer (DBT).
For supporting implementation of Khadi programme, Government of India extends Market Development Assistance (MDA) to Khadi Institutions (KIs). Under the modified MPDA scheme, financial assistance is provided to institutions @ 30% of Prime Cost of khadi and polyvastra, to be distributed amongst Artisans (40%), Producing Institutions (40%) and Selling Institutions (20%) through online transfer to KIs and 271796 artisans.
KVIC has started disbursement of financial assistance to KIs as well as Artisans under DBT mode where the portion of MPDA is directly credited in their bank accounts.
KVIC also provides interest subvention for the bank finance for meeting capital requirement, under the Interest Subsidy Eligibility Certificate (ISEC) Scheme, availed by KIs. The subsidy under the scheme is also remitted directly to the cash credit account of KIs online.
Khadi certification has been made online and simple to enable new companies to start Khadi venture.
KVIC has started e-commerce platform and franchisee system for online marketing of Khadi products and extending the marketing network.