RAJYA SABHA
The Government
through the Khadi and Vilage Industries Commission (KVIC) promotes
development of rural industries by way of financial, technical
and managerial assistance. Besides, the Rural Employment Generation
Programme (REGP) is implemented throughout the country. Under
this scheme, 25 per cent of the project cost is provided as
margin money. For project cost above Rs. 10 lakhs and upto Rs.
25 lakhs, the rate of margin money is 25 per cent of Rs. 10
lakhs plus 10 per cent of the balance cost of the project. For
weaker sections, tribal areas, north eastern region, Sikkim,
Andaman and Nicobar Islands, Lakshadweep, the margin money grant
is 30 per cent of the project cost upto Rs. 10 lakhs and for
balance amount ( upto Rs. 25 lakhs), it is 10 per cent. The
beneficiary is required to invest his own contribution of 10
per cent of the project cost. In case of SC/ST and other weaker
sections, beneficiary’s contribution is 5 per cent of the project
cost.
To strengthen
and encourage establishment of small industries related to khadi
in the country, the Government has announced a package which
consists of rebate policy for five years, option of rebate and
Market Development Assistance (MDA), insurance cover to khadi
artisans, creation of packaging and design facilities, measures
to promote marketing, brand building, cluster development etc.
