The Hindu : Kerala News : KVIC city unit to take up major diversification projects

Online edition of India's National Newspaper
Friday, Jun 02, 2006

Kerala

Kerala

KVIC city unit to take up major diversification projects

R. Ramabhadran Pillai

Rebate on items to be extended every month

KOCHI: The Kochi unit of the Khadi and Village Industries Commission (KVIC), functioning under the Commissioner for Khadi and Village Industries in the Ministry of Agro and Rural Industry, will initiate measures to expand its activities. It will organise more exhibitions and extend the period for providing rebate for its products. A 10 per cent rebate is being extended from June 1 to 7. Similar reductions are being planned every month in addition to the rebate extended during festival seasons. The rebate is being extended for more than 100 days in a year, according to a senior official of the organisation.

The organisation is offering a margin money scheme to entrepreneurs. It will provide 25 per cent grant for starting enterprises under certain categories. The scheme is open to individuals, institutions, cooperative societies, etc.

The industries coming under the scheme have been categorised into seven. These are mineral-based industry, forest-based industry, agro-based and food industry, polymer and chemical-based industry, engineering and non-conventional energy, textile industry and service industry.

The service industry would include laundry, plumbing, servicing of electrical wiring and domestic appliances, tyre vulcanising unit, battery charging, etc.

Any industry or business connected with meat, its processing, canning and serving items made of it, production and sale of intoxicant items like beedi, pan and cigarette have been included in the negative list by the Commission.

About 2 lakh people are engaged in village industries in Kerala and the KVIC is providing effective support to them, the official said.

He claimed that the Commission is offering competent rates for its items. The Commission is providing export incentives to manufacturers. It is assisting the manufacturers to take part in international exhibitions.

Under the Rural Employment Generation Programme (REGP), a flagship programme of the Commission, 23,453 projects have been set up in the country during 2004-05 which has created additional employment for 5,30,025 persons.

The performance of the programme has grown by more than 12 per cent in terms of employment generation.

In order to make the REGP scheme more effective and accessible to the new entrepreneurs, the KVIC has launched Rural Industrial Consultancy Service (RICS) under which first generation entrepreneurs are provided services such as project formulation, coordination with banks, technical backup, marketing support, etc. It is aimed at helping new entrepreneurs to set up projects which are more viable and better manageable. The RICS extends infrastructural support and services to upgrade production capacity, skills and market promotion.

New initiatives of the Commission include Scheme for Regeneration of Traditional Industries. The Ministry of Agro and Rural Industries has been assigned the responsibility for implementing the scheme.

An outlay of Rs.97.25 crores has been provided for the purpose.

The KVIC, with its wide network and presence in rural areas, would play a major role in implementing the scheme.

The scheme broadly aims at cluster development for khadi, coir and village industries including leather and pottery.

The KVIC has tied up with various organisations in public and private sector. These include Nehru Yuva Kendra, ITC and Army Wives Welfare Association.

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