The Hindu Business Line : KVIC to start consultancy services in rural areas

THE Khadi and Village Industries Commission (KVIC) has plans to start Rural Industry Consultancy Services soon in all districts of Tamil Nadu, to guide the new entrepreneurs to commence their units in villages and rural areas.

According to Mr S. Rajagopal, Member, KVIC, the Commission has set an investment target of Rs 5,000 crore for the current Five Year Plan for the rural industries. About Rs 1,000 crore has been already disbursed in different States.

The response in Karnataka and Kerala for starting village industries has been more encouraging, compared to Tamil Nadu.

The decision to start consultancy services is based upon the policy decision taken by the Khadi Commission, Mumbai. The new entrepreneurs will be educated about various aspects of commencing an industrial unit in rural areas and the KVIC will offer financial assistance for starting units in any sector like information technology, hotel, services or any other employment-generating activity. The criteria for guidance are only that the proposed business should be in rural areas and villages.

The commission would help in preparing the project report as also about obtaining bank loans, sales tax, and market survey and regarding the machinery. The consultancy services from the Khadi Commission will be only at nominal charges. The project cost should not exceed Rs 25 lakh and the assistance will be available to Trusts, individuals and Societies, he added.

He further said that the khadi sector is now focusing on value-addition and is hence concentrating on new designs. Experts from National Institute of Design and National Institute of Fashion Technology are being involved in coming out with new and modern designs for khadi materials.

The KVIC has already started separate cells in Chennai and Madurai under the first phase and the district services would be taken up in the second phase, he informed.

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