KVIC Announced Guidelines Expedite PM's Vision for Promoting Local Goods

The Khadi and Village Industries Commission (KVIC) has geared up to Prime Minister Shri Narendra Modi’s call to become “vocal for local” and further making it “global”. A day after the Prime Minister’s appeal for encouraging local products, the KVIC issued a slew of guidelines to expedite the implementation of projects under the flagship program PMEGP. Prime Minister Modi during his recent address to the nation have mentioned his thanks to the nation for responding positively on his call to promote khadi products. PM Modi said, "I am thankful to the people of India for showing huge respect and interest towards local made Khadi products as I appealed to them and as a result, the sale of Khadi has increased and registered great performance."

KVIC Chairman, Mr. Vinai Kumar Saxena today instructed concerned agencies to scrutinize the applications under PMEGP and forward it to banks for disbursal of funds within 26 days. He also instructed bringing down this time frame to 15 days. It will be mandatory for implementing agencies to guide and hand-hold the applicants for the formulation of proposals and assist them till sanction of loan. All agencies will follow-up with banks for early sanction of loans.

According to the revised guidelines, the Monitoring Cell at KVIC, Mumbai will monitor the application process on a daily basis while it will be giving feedback to the implementing agencies every fortnight. The progress report, thereafter, shall be placed for the perusal of the CEO and Chairman of KVIC.

Shri Saxena said the revised guidelines come in wake of the Prime Minister’s appeal for encouraging local production. “As the Prime Minister has said, ‘self-dependence’ is the mantra. Easing out the process under PMEGP will further accelerate the growth of local manufacturing. This will ensure maximum employment generation within a short time frame,” Saxena said. He said the transformation of the Khadi and Village Industries from local to global was a case study for other local industries and enterprises. “As the nodal agency, KVIC is committed to hand-hold the upcoming projects under PMEGP,” he added.

To boost the local production, it has been decided that at least one unit each pertaining to manufacture of N95 masks, ventilators or its accessories, PPE Kits for medical staff, sanitizers/liquid hand wash, thermal scanner and agarbatti and soap will be set up in each district. This is in order to meet the growing demand due to prevailing Covid-19 situation in the country.

According to the revised guidelines, the implementing agencies, at the time of scrutiny, must ensure that the applicant has secured at least 60 marks out of 100 in the scorecard. Similarly, technical feasibility like availability of raw material, manpower, access to transport and electricity must be examined so as to reduce rejections at the bank level.

Similarly, the implementing agencies shall also examine the market study, assessment of demand for the proposed product, similar projects in the vicinity and the market strategy. The agencies will ensure that the proposal falls under the selected bank’s jurisdiction to avoid rejection on that ground.