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Rural Employment Generation Programme

REGP Through Khadi & Village Industries Commission (KVIC)
By: Prakash - Government Schemes - September 17, 2011
rural employment generation programme regp through khadi village industries commission kvic

Government of India’s primary concern is to provide new avenues of employment for rural unemployed people in the country side. To meet the expectation of various sections of rural India, Government of India launched Rural Employment Generation Programme (REGP) through Khadi & Village Industries Commission (KVIC) in a grand manner.

The Main objectives that KVIC has set REMP are:

1. Generate rural area employment

2. Develop entrepreneurial skill set among the rural unemployed youth

3. Facilitate participation of financial institutions for higher credit flow to rural industries

4. Finally, to achieve the goal rural industrialization

Scheme Details:

Project cost will include capital expenses and one cycle of working capital.

The Scheme will NOT finance for the project Without Capital expenses.

Land cost should NOT be included in the project to avail this scheme.

Building cost as well as long lease or rental workshop/shed can be included in the project.

Beneficiaries of this scheme include:

  1. Individual
  2. Self Help Groups
  3. Institutions registered under societies registration act,1860
  4. Co-operative societies
  5. Trust and Public limited companies owned by State/Central Government

In this Scheme, rural areas are the villages irrespective of any population and towns, which has population less than 20000 persons as per the revenue record of State or Union Territory. Any adult above 18 years of age is eligible for financing in this scheme. It’s also mandatory for the projects above 2 Lakhs to register with either KVIC or KVIB. To register with KVIC, beneficiary has to apply on the prescribed form duly as recommended by the financing bank. Registration is valid for 3 years and then maybe renewed by paying 0.5% of the Project cost. The cost for registration is 1%of the project cost and has to be accompanied with the application form.

There are few businesses NOT supported by this scheme and they are listed below:

  1. Rural Transport except Cycle Rickshaw, Auto rickshaw in Andaman & Nicobar     Islands and House boat, Shikara and tourist boats in Jammu & Kashmir.
  2. Spinning and Weaving related Projects, Khadi and Polyvastra, Yarn and Cloth production under Khadi Certification Rules
  3. Items causing Environmental problems like manufacturing of polythene carry bags (less than 20 microns thickness), manufacturing carry bags or containers made of recycled plastic for the purpose of storing, carrying, dispensing or packaging of food stuffs.
  4. Industries or Businesses related to cultivation of crops/plantation of Tea or Coffee or Rubber
  5. Hotels or Dhaba or Shops serving liquor, preparing tobacco as raw materials, tapping of toddy for sale.
  6. Industries taking advantage of Khadi Programme under the purview of certification rules and availing sales rebate such as processing of Pashmina Wool and products like hand weaving and hand spinning.


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