Right to Information Act, 2005
Prime Minister's Rozgar
Yojana (PMRY)
Rural Employment Generation
Programme (REGP)
Scheme of Fund for
Regeneration of Traditional
Industries (SFURTI)
New Initiatives
Annual Reports
10th Plan Outlay & Actual Expenditure
Outcome Budget 2005-06
Tender Notice
Vacancy Notice
Lok Sabha Questions
Rajya Sabha Questions
 

INTRODUCTION

On the basis of recommendation of the High Power Committee report, submitted in May 1994, headed by the then Prime Minster of India, the KVIC launched Rural Employment Generation Programme (REGP) with effect from 1st April, 1995 for generation of two million jobs under the KVI sector in the rural areas of the country. The term rural areas has been defined under the KVIC Act, 1956 as under:

Any area classified as village as per the revenue records of the state, irrespective of population.

It also includes an area classified as town, provided its population does not exceed 20,000 as per 1991 census.

Similarly, the term village industries has been defined as "any industry located in rural area which produces any goods or renders any service with or without the use of power and in which the fix capital investment per head of artisan or worker does not exceed Rs. 50,000 or such other sum as may be specified by Central Government from time to time". All activities which do not appear in the negative list circulated by KVIC are eligible for financing under the scheme.

MAIN OBJECTIVES

To generate employment in rural areas.
To develop entrepreneurial skill and attitude among rural unemployed youth.
To achieve the goal of rural industrialization.
To facilitate participation of financial institutions for higher credit flow to rural industries.

SALIENT FEATURES OF THE SCHEME

The scheme is applicable to all village industries project set up in rural areas.

The eligible agencies under the scheme are (i) individuals (rural artisans/entrepreneurs) ii) institutions cooperative societies, Trusts & SHGS for projects upto Rs. 25.00 lakhs.

Partnership Firms Private/Public Limited companies, Joint ventures, Jt. Borrowers, Co-obligators of HUF are not eligible under the Scheme.

Under this programme, capital subsidy in the form of margin money is provided at the rate of 25% of the project cost upto Rs. 10 lakhs and 10% on the balance project cost upto Rs. 25 lakhs.

In case of weaker section beneficiary viz. SC/ST/OBC/ Women/Physically Handicapped/Ex-servicemen 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 per cent of the remaining cost of the project. Cost of land should not be included in the project cost.

Under the scheme, the borrower is required to invest his own contribution of 10 per cent of the project cost. In case of SC/ST and other weaker section borrowers, the beneficiary’s contribution will be 5% of the project cost.

Banks will sanction 90 percent of the project cost in case of general category borrowers and 95 percent of the project cost to the weaker section beneficiaries/institutions and disburse full amount of the loan. After the sanction of the credit facility by the Bank branch, eligible amount of Margin Money will be kept in Term Deposit of two years in the account of the borrower at the leading 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.

IMPLEMENTATION

Presently KVIC is implementing REGP through :

  • All Public Sector Banks,

  • All regional Rural Banks,

  • Co-operative Banks approved by the State/U.T.,  KVIBs, Private Commercial Banks approved by the state KVIBs; and

  • Other Financing Institutions of State & Central Government as approved by KVIC.

Sponsorship – Sponsoring of Project by any agency is not mandatory. However, KVIC’s State/Regional Offices and State KVI Boards/DIC may sponsor the project if approached.

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

STATUS AND PROGRESS OF  REGP

During the year 2004-05, the number of projects financed was 23,453 as against the 24,747 number of projects financed in the previous year. Further in Employment Generation through the Scheme, the Andhra Pradesh stood at No. 1 followed by Uttar Pradesh, Rajasthan, Madhya Pradesh, West Bangal and Haryana.

(a) Flow of Funds: For extending support to the entrepreneurs for providing margin money and other backward forward linkages, an amount of Rs. 292.40 crore was released to meet the margin money claims of the entrepreneurs and another Rs. 3.48 crore for the purpose of arranging backward, forward linkages for the REGP units in the Country. The banks which include the nationalized commercial banks as well as cooperative banks, extended financial assistance of about Rs. 665.21 crores which helped the entrepreneurs to establish the units.

(b) Categorywise distribution of projects: The number of projects sanctioned (category-wise) during 2004-05 are as under:-

Sr. No.

Category

No. Projects

1.

Scheduled Castes

2696

2.

Scheduled Tribes

1760

3.

O.B.Cs.

5531

4.

Minority Community

1743

5.

Ex-Servicemen /physically handicapped

577

6.

General

11146

Total

23453

Women

6229

From the above table, it may be seen that the percentage in each category to the total number of projects was fairly good for all the categories i.e. for Scheduled castes it 11.50%, for Scheduled Tribes 7.50%, OBCs 23.58%, Women Entrepreneurs 26.56% and Others which include ex-servicemen, Physically handicapped, hill and border areas 2.46%.

(c) Cost-wise Range of REGP Projects : Though the units that have been set up differ from State to State with respect to size and industry, the financing pattern shows that there has been a distribution of all type of industries with respect to project cost e.g. the share of projects upto 1.00 lakh was 23.41%, Rs. 1.00 lakh to Rs. 5.00 lakh was 50.04%, Rs. 5.00 Lakh to Rs. 10.00 lakhs was 17.61% and 10.00 lakhs to Rs. 25.00 lakh was 8.94%. This shows that the number of small projects on the whole was on the higher side.

(d) Industry-wise Development : The KVIC has broadly classified all village Industries into 7 groups and care is taken to see that the development in all industries is according to the availability of local needs, raw material, technical competency and the market requirement. The maximum number of units established was in the Agro and Food Processing followed by the services sector.

(e) Physical Performance of REGP :During the year 2004-05, a total of 23453 projects have been financed under the scheme generating 530025 number of employments. A sum of Rs. 292.40 crores have been utilized as margin money for this period. The State-wise performance under the scheme for the year 2004-05 is given at Table-I. The cumulative figures in respect of number of projects financed, cumulative employment generated, and cumulative margin money utilizes under the REGP scheme till 31.03.2005 are given at Table-II, Table-III and Table-IV, respectively.

f) Backward and Forward Linkages : The KVIC provided financial assistance to its State Offices as well as the State Khadi and Village Industries Boards for establishing backward and forward linkages of the entrepreneurs/institutions. Under this, an amount of Rs. 347.58 lakh was released which was utilized for organizing 92 Nos. of workshops, 209 Nos. awareness camps, 71 Nos. of exhibitions, 67 Nos of Bankers Meeting organized. 11525 No. of persons trained under Entrepreneur Development Programmes (EDPs) and 5156 No. of units were physically verified during the year 2004-05

NEW INITIATIVES

For smooth implementation of the programme, following new initiatives were taken by KVIC during the year 2004-05:-

  • Decentralisation of the implementation of the scheme by making payment of margin money through State Offices and State KVI Boards.

  • Fixation of targets for projects and Margin Money for all field offices based on Rural Population of the State.

  • Financing of units based on coir as raw material is allowed.

  • Financing of auto-rickshaws in Andaman and Nicobar Islands, house boat, shikara and tourist boat in Jammu and Kashmir are also allowed under rural transport, keeping in view the special requirement of these States.

  • For providing information/guidance to the new entrepreneurs, REGP helping counters are opened in all the field offices of the KVIC and the State KVI Boards.

  • 346 number of model branches of Public Sector Banks are identified. They are provided margin money in advance on quarterly basis.

  • Training to all KVIC/KVIB’s field offices staff are provided to acquaint them with the implementation of the programme.

  • Extensive publicity programme was made through workshops, awareness camps, exhibitions etc.

***********************************************************************
PROGRESS MADE UNDER REGP DURING 2004-05
- STATE-WISE PERFORMANCE

Table-I

Sr.No.

State/Ut

No. of projects

Margin Money utilized 
(Rs. lakh)

Employment generated

1

Andhra Pradesh

1988

3394.19

66463

2

Arunachal Pradesh

43

66.03

1219

3

Assam

1658

1277.42

25768

4

Bihar

254

281.69

5049

5

Goa

138

88.90

1670

6

Guajrat

376

530.55

8581

7

Haryana

1140

2142.25

35691

8

Himachal Pradesh

469

584.55

12256

9

Jammu & Kashmir

922

657.72

9406

10

Karnataka

934

1063.83

19478

11

Kerala

914

1027.95

16434

12

Madhya Pradesh

1361

2125.71

40539

13

Maharashtra

1773

1439.17

25040

14

Manipur

102

73.66

1313

15

Meghalaya

146

196.03

3789

16

Mizoram

162

257.48

5180

17

Nagaland

151

204.46

3851

18

Orissa

991

863.05

15241

19

Punjab

864

1834.63

30665

20

Rajasthan

1537

2064.33

38287

21

Sikkim

139

1147.28

3227

22

Tamilnadu

925

214.14

19159

23

Tripura

233

3596.64

3994

24

Uttar Pradesh

2210

1999.62

64900

25

West Bengal

2584

165.78

36581

26

A & N Island

6

4.16

93

27

Chandigarh

8

21.45

188

28

Delhi

9

8.09

144

29

Pondichery

7

9.05

146

30

Jharkhand

240

1000.91

6855

31

Chattisgarh

656

320.60

18347

32

Uttaranchal

513

578.63

10471

Total

23453

29239.95

530025

***************************************************************************************************************
NUMBER OF PROJECTS FINANCED UNDER REGP UPTO 31 MARCH 2005
SINCE ITS INCEPTION

Table-II

Sr.No.

State/Ut

Number of projects financed

1

Andhra Pradesh

14858

2

Arunachal Pradesh

422

3

Assam

3865

4

Bihar

1100

5

Goa

2439

6

Guajrat

1474

7

Haryana

6249

8

Himachal Pradesh

2374

9

Jammu & Kashmir

7556

10

Karnataka

14093

11

Kerala

9341

12

Madhya Pradesh

19884

13

Maharashtra

21684

14

Manipur

840

15

Meghalaya

3293

16

Mizoram

1070

17

Nagaland

4941

18

Orissa

4157

19

Punjab

10467

20

Rajasthan

27434

21

Sikkim

286

22

Tamilnadu

6741

23

Tripura

666

24

Uttar Pradesh

17725

25

West Bengal

19807

26

A & N Island

422

27

Chandigarh

156

28

D. & N. Haveli

15

29

Delhi

228

30

Lakshdweep

10

31

Pondichery

956

32

Jharkhand

1058

33

Chattisgarh

1787

34

Uttaranchal

2307

Total

209705

***************************************************************************************************************
EMPLOYMENT OPROTUNITIES GENERATED UNDER REGP UPTO 31
MARCH 2005 SINCE ITS INCEPTION

Table-III

Sr. No

States

Numbers

1

Andhra Pradesh

268821

2

Arunachal Pradesh

6336

3

Assam

56387

4

Bihar

15764

5

Goa

22184

6

Gujarat

16648

7

Haryana

139031

8

J & K

59562

9

Him.Pradesh

57256

10

Karnataka

176030

11

Kerala

150934

12

M.P.

218191

13

Maharashtra

210734

14

Manipur

15755

15

Meghalaya

28806

16

Mizoram

18700

17

Nagaland

93714

18

Orissa

45799

19

Punjab

147653

20

Rajasthan

313496

21

Tamilnadu

86439

22

Tripura

15167

23

U.P.

332871

24

West Bengal

170478

25

Sikkim

5512

26

A & N. Island

2718

27

Chandigarh

1295

28

D & N. Haveli

303

29

Delhi

4681

30

Lakshdweep

173

31

Pondicherry

12121

32

Chattisgarh

50336

33

Jharkhand

21566

34

Uttaranchal

39774

Total

2805235

***********************************************************************
MARGIN MONEY UTILISED UNDER REGP UPTO 31 MARCH 2005 SINCE
ITS INCEPTION

Table-IV

Sr. No

States

Margin Money utilized (Rs. lakh)

1

Andhra Pradesh

11116.45

2

Arunachal Pradesh

270.37

3

Assam

2693.66

4

Bihar

669.84

5

Goa

976.09

6

Gujarat

905.94

7

Haryana

7603.78

8

J & K

2162.45

9

Him.Pradesh

3881.72

10

Karnataka

11251.72

11

Kerala

10014.30

12

M.P.

8832.78

13

Maharashtra

8478.11

14

Manipur

1793.36

15

Meghalaya

985.31

16

Mizoram

1689.81

17

Nagaland

1562.76

18

Orissa

2555.08

19

Punjab

9336.00

20

Rajasthan

13485.41

21

Tamilnadu

4656.17

22

Tripura

612.24

23

U.P.

18221.53

24

West Bengal

6463.43

25

Sikkim

314.06

26

A & N. Island

148.45

27

Chandigarh

89.77

28

D & N. Haveli

18.59

29

Delhi

178.61

30

Lakshdweep

49.42

31

Pondicherry

72.70

32

Chattisgarh

2827.17

33

Jharkhand

1001.40

34

Uttaranchal

2268.32

Total

137186.8 0

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