INGOING SCHEME UNDER MANIPUR KHADI & V.I. BOARD RURAL EMPLOYMENT GENERATION PROGRAMME (REGP)

        To generate employment in rural areas the Khadi & Village Industries Commission launched REGP. Rural youths may avail of financial assistance under scheme for taking of self-employment ventures in the field of village Industries and service activities. Maximum Ceiling of the project is Rs.25 lakh per unit. Proportion Contribution is 5% of the project cost. Scheduled Banks/Commercial banks will finance 95% of the project cost as loan. The Khadi & Village Industries Board will provide 30% of the project cost up to a maximum Rs. 4.00 lakhs as Margin Money (Subsidy).

 For details, please contact KVIC/ MKVIB/Banks.

        Providing more and more new avenues of employment for rural unemployed people in the countryside has all along been the prime concern of Government of India.
        Keeping in mind the expectations of various sections of rural areas, the Ministry of A&Ri, Govt. of India has launched REGP through KVIC in a big way.

i)    Eligible Projects
        The scheme is applicable to all new village Industry projects set up in "rural area". Any extension or renovation of existing unit will not be eligible for this facility.

ii)    Eligible Activities
        All activities which do not appear in the Negative List circulated  by KVIC are eligible for financing under the scheme.
        ["Village industry" means any industry located in Rural Area which produces any goods or renders any service with or without the use of power and in which fixed investment per head of any artisan or a worker does not exceed Rs. 50,000/-]

iii)    Eligible Borrowers
        The eligible agencies under the scheme are (i) Individual artisans/entrepreneurs, (ii) Institutions, Cooperative Societies and Trust, and (iii) SHGs.
        (Partnership firms, joint Ventures, Jt. Borrowers, Co-obligators or HUF are not eligible under the scheme).

iv)   Celling Limit of the project
        For individuals/institutions, the ceiling limit is Rs.25.00 lakhs.

v)   Rural Area
        "Rural Area" means -|
        a) Any area classified as Village as per the revenue records of the State/U.T., irrespective of population.
      b) It also includes an area even if classified as town, provided its population does not exceed 20,000(as       per 1991 census)

vi)    Banks
        a) All public Sector Banks
        b) All Regional Rural Banks
        c) Co-op. Banks approved by the State/U.T. KVIBs
        d) Private Commercial Banks approved by the state KVIBs
        e) Other Financing Institutions of State & central Govt., as approved by KVIC

vii)    Sponsorship
        Sponsoring of projects by any agency is not mandatory. However, KVIC's State/Regional Offices and State KVI Boards/DICs may sponsor the project, if approached.

viii)    EDP Training
        Once the project is sanctioned by the financing branch of the Bank, before releasing the second instalment of loan, the beneficiary is to be imparted 3-day EDP training arranged by the State/Regional Director.

ix)    Margin Money
        Up to Rs. 10.00 lakhs, 25% of the project cost will be provided by KVIC as Margin Money. For projects above Rs. 10.00 lakhs and up to Rs. 25.00 lakhs, rate of Margin Money will be 25% of the project cost up to Rs. 10.00 lakhs plus 10% of the remaining cost of the project.
        In case of weaker section beneficiary viz. SC/ST/OBC/Women/physically Handicapped/Ex-servicemen and Minority Community beneficiary/Institution and for Hill, Border and Tribal Areas, North Eastern Region, Sikkim, Andaman & Nicobar Islands, Lakshadweep, margin Money grant will be at the rate of 30% of the project cost upto Rs. 10.00 lakhs and above this amount up to 25.00 lakhs, it will be 10% of the remaining cost of the project.

x)    Borrower's Contribution
        Under the scheme, the borrower is required to invest his "Own Contribution" of 10% of the project cost. In case of SC/ST/OBC/Women/Physically handicapped/Ex-servicemen and Minority Community and other weaker section borrowers, the contribution will be 5% of the project cost.
        The maximum permissible limit for own contribution is 50% of the total project cost.

xi)    Quantum of Loan
        Banks will sanction 90% of the project cost in case of general category borrower and 95% of the project cost in case of Weaker Section beneficiary/Institution and disburse full amount of the loan.
        Cost of land should not be included in the project cost.

xii)    Payment of Margin Money
        After the sanction of the credit facility by the bank branch, eligible amount of Margin Money will be kept in Term Deposit of 2 years in the name of the borrower at the lending bank branch, which will be credited to the borrower's loan account after a period of two years from the date of first disbursement of loan.

NEGATIVE LIST

Activities under Negative List (not eligible for Margin Money under REGP) are :-

A.    Meat (processing, canning and/or serving) and Intoxicant items (production/manufacture/sale).

B.    Cultivation of Crops/Plantation, Animal Husbandry, Pisciculture, Piggery, Poultry etc. and Khadi &  Polyester.

C.    Any project causing environmental problems.

        Other than negative list any Project can be established which fulfils the prerequisites as mentioned above.

 For further details and application form, contact the nearest public Sector Bank/State Office or Regional Office of KVIC/ State KVI Board.