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Village Industries

J&K Khadi and Village Industries Board ( KVIB) was established with an aim to provide financial assistance to the poor and down trodden artisans of the state for establishment of small scale Industrial units.

J& K Khadi and Village Industries Board keeping with its mission to uplift the rural poor, provides financial assistance for establishing Village Industries. These Village Industries make use of the locally available raw materials, resources and help to build up a strong rural economy in terms of money and wealth. The financial assistance extended to the people by the Board is as per the approved norms of Khadi and Village Industries Commission (KVIC).

KVIC Funding (Pattern Approach)

Prior to 1995, KVIB was implementing KVIC direct funding scheme, under the KVIC funding, KVIB was providing loans under pattern approach at an interest rate of 4 % p.a. In case of default, the panel interest @ 5% was charged.

Consortium Bank Credit (CBC) scheme

During the year 1995-96, a new scheme namely Consortium Bank Credit (CBC) as introduced by KVIC was implemented by J&K KVIB. Under CBC, the loans were provided on higher rate of interest depending upon the Prime lending Rates (PLR) as were being communicated by the KVIC. The operation of the schemes was ceased during the year 1998-99.


Special Employment Programme (SEP) was launched during the year 1997-98 in the two Districts of Jammu, Anantnag and Reasi Block of erstwhile Udhampur District in the State and later on the nomenclature of the scheme was changed as “ Rural Employment Generation Programme (REGP)” which was being implemented in all the district of the state in the year 1998-99. Under this programme, direct bank financing of individual project was available and KVIB was to motivate, guide and sponsor the cases to banks and after sanction of cases. The KVIB would release 25% of total Project cost as Margin Money support in favour of the beneficiary, ( 30% in case of women, SC/ST/OBC/ Minority/Border Area and RBA Categories )The amount of Margin money was to kept under TDR for a period of 2 years in the name of the beneficiary at financing branch Level as per guidelines of the scheme. The REGP scheme ceased to exist w.e.f 31.3.2008.


“Prime Minister’s Employment Generation Programme (PMEGP)” was launched on 15th August 2008 by Government of India by merging two existing scheme REGP and PMRY. KVIB is one of the implementing agencies of PMEGP, besides KVIC and DICs. PMEGP is a credit linked subsidy programme administered by Ministry of MSME Government of India with Khadi & Village Industries Commission (KVIC) as Nodal Agency at National Level. Under the said programme the KVIC, Government of India, allocates Margin Money funds to be disbursed to various beneficiaries through designated Nodal Bank branches. The said programme envisage generation of employment opportunities through establishment of Micro Enterprises in rural /urban areas. The KVIB is an implementing agency only for rural areas of the state.


Categories of beneficiaries under PMEGP

Beneficiary’s contribution (of project cost)

Rate of Subsidy (of project cost)

Area (location of project/unit)



General Category



Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc.




  • The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.
  • The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.
  • The balance amount of the total project cost will be provided by Banks as term loan


  • Any individual, above 18 years of age
  • There will be no income ceiling for assistance for setting up projects under PMEGP.
  • For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
  • Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
  • Institutions registered under Societies Registration Act, 1860.
  • Production Co-operative Societies
  • Charitable Trusts.
  • Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.


  • A certified copy of the caste/community certificate or relevant document issued by the competent authority in the case of other special categories, is required to be produced by the beneficiary to the concerned branch of the Banks along with the Margin Money (subsidy) Claim.
  • A certified copy of the bye-laws of the institutions is required to be appended to the Margin Money (subsidy) Claim, wherever necessary.
  • Project cost will include Capital Expenditure and one cycle of Working Capital. Projects without Capital Expenditure are not eligible for financing under the Scheme. Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank’s Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be.
  • Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost calculated for a maximum period of 3 years only.
  • PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible (Para 29 of the guidelines refers).


  • The Institutions/Production Co-operative Societies/Trusts specifically registered as such and SC/ ST/ OBC/ Women/ Physically Handicapped / Ex-Servicemen and Minority Institutions with necessary provisions in the bye-laws to that effect are eligible for Margin Money (subsidy) for the special categories. However,, for Institutions /Production Cooperative Societies/Trusts not registered as belonging to special categories, will be eligible for Margin Money (Subsidy) for general category.
  • Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The ‘family’ includes self and spouse.

Today, Jammu & Kashmir Khadi & Village Industries Board is the leading organization in the promotion and popularization of Khadi and Village Industries sectors in the state.


The Board has financed units engaged in manufacturing of Pottery ,Lime, Stone Cutting and quarrying unit, Utensils Making, Gold and silver Jewellery, Plaster of Paris, Glass Decoration /Designing ,Stone Crusher, Brick clamps, Brick Kiln ,Cement Jally, Hallow Bricks, Cane & Bamboo, Paper Machie, Exercise Note Books/ Registers, Photo Framing, Tyre Retreading ,Footwear Industry, Leather goods and Bags, Paper bags and cups/plates, Processing of Cereals and pulses, Masala Making, Atta Chakki, Mini Rice Mill, Gur and Khandsari,Oil Industry, Sweet shop, Beekeeping, Fruit & Vegetable processing, Pickle making, Dalia Making, Milk Products, Cattle feed, Papad Making, Juice Making, Ice cream making, Soap manufacturing, Candle Making, Rexine and PVC items, Detergent soap and powder, Shampoo and Hair Oil, Rubber items including Hawai Chapple, Carpentry, Blacksmithy, Wooden and steel furniture, Steel Fabrication Welding etc ,Bross and copper manufacturing, Voltage Stabilizer, Motor Binding, Paper pins, stove manufacturing ,Wood carving, Body Builder, Steel Jalli, Toys ,Laundry, Beauty Parlour ,Hair cutting, Electrical Repairs, Diesel Engine repair etc including service of vehicles, Tailoring, Dhaba not serving Meat /Liquor, Cycle Repair shop, Plumber, Tent & Light House, Shikra & House Boat, Hosiery, Readymade Garments, Embroidery & Boutique


On its excellent performance in Khadi & Village Industries Sector in the State, the J&K KVI Board has been conferred with coveted “National Award for Excellence in Khadi and Village Industries 2011” in the category of “BEST STATE KVI BOARD Non NE ZONE” and the Award was received by the Secretary/Chief Executive officer on behalf of the Board from Her Excellency the President of India at Vigyan Bhavan, New Delhi, on 2nd September 2011.

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