69
DIRECTORATE OF BUDGET
KHADI AND VILLAGE INDUSTRIES COMMISSION
3,IRLA ROAD, VILE PARLE (W), MUMBAI-56
No.BGT/Guidelines -2009-10/08-09 Date: 24.12.2008
To
Director
State/Divisional Offices
Sub: Guidelines for budget discussion with the directly
Aided/Board aided institutions and Departmental units for
the year 2009-10……….regarding.
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Sir,
Kindly open the attachment regarding Budget Guidelines for the year 2009-10. Hard copy of the said Circular will be reaching you shortly. You are requested to download the matter and initiate further steps for budget discussion with the directly aided/ Board aided institutions and Departmental units also, as per the guideline. However ensure completion of the task and to send the recommendation of SLBT, by 31st January, 2009, positively.
In view of that, you are requested to ensure submission of budget proposal within the deadline.
Yours faithfully,
(Samir Kumar)
Director (Budget)
Copy to:-
Zonal Dy.C.E.Os., with a request to kindly ensure the completion of Budgetary exercise of State/Divisional Offices under their jurisdiction, within the deadline.
(Samir Kumar)
Director (Budget)
DIRECTORATE OF BUDGET
KHADI AND VILLAGE INDUSTRIES COMMISSION
IRLA ROAD, VILE PARLE (WEST), MUMBAI-56.
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No.BGT/Guidelines-2009-10/2008-09 Date : 24.12.2008
C I R C U L A R
Sub.: Guidelines for Budget discussion with the Directly
Aided/Board Aided Institutions and Departmental Units
for the Year 2009-10.
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It has been decided that budget discussion for the year 2009-10 of the Commission’s Directly aided institutions, Board aided institutions and Departmental Units of the KVIC and State/U.T. KVI Boards shall be taken up by the State Level Budget Team (SLBT) with the respective In-charges of the Departmental units / authorized representatives of the Institutions in the premises of the State/Divisional Offices/Boards.
2. The SLBT will comprise following officials from KVIC and State KVI Board:-
i) State/Divisional Director or In-charge of the office.
ii) CEO/MD/MS of the Board or his representative not below the rank of Deputy Director.
iii) FA of the Board or his representative not below the rank of Accounts Officer.
iv) Dy. Director/Asstt. Director in charge of Programme of field Office.
v) Accounts Officer/Accountant of field Office.
vi) Manager of DSO and Project Manager of CSP wherever these units are available.
vii) Central Office Representative wherever necessary .
viii) Secretary or Chairman of the State Level Federation recognized by KVIC (or) Secretary / Chairman of the Parent body viz. Gandhi Ashram, Lucknow/TNSS, Tirupur /BKGS, Muzaffarpur /KSS, Calicut etc., wherever available.
Note: Chairman/Secretary of Federation or Parent body should only attend the SLBT meeting. They cannot authorize any one to attend on their behalf.
3. With the likely introduction of MDA from the year 2009-10, the entire focus will be shifted from sales to production. As envisaged by the XI th Plan projections, the production is expected to be increased by 20% in the year 2009-10. Therefore the Institutions are to ensure that they are capable of producing the desirable quantum of production on the basis of infrastructure and manpower available with them. The Production target should be ascertained on the basis of the formula developed by the Directorate of KC, as per Annexure -“A”. Actual performance of the institution in the preceding three years should be considered while fixing the target. The SFC has observed that budget guidelines are not taken seriously and the proposals are often seen to contain inaccurate data, which has not been verified at the State Office. The State Director should take the primary responsibility in ensuring ; while submitting Budget proposals as per format as placed under Annexure-G
a) Accuracy of data relating to previous performance.
b) Accuracy of data relating to infrastructure.
c) Accuracy of data relating to production target.
d) Accuracy of data relating to available fund. Where there are surplus funds, the same should be indicated correctly.
The State Director should also certify that the budget proposals have been sent after fully complying with the requirement as per budget guidelines .
4. The budget discussion should be taken up as per time schedule, giving adequate time to DAIs, BAIs and Departmental Units of KVIC. However the budget discussion by the concerned State/Divisional Office should be completed by 31/01/2009.
Budget proposals should be finalized by the SLBT on the basis of Budget Guidelines issued from Central Office. Recommendation of all SLBTs have to be forwarded to the Concerned Directorates of KVIC Central Office.
Directorates of Central office should verify the Budget proposals on the basis of Budget guidelines. Any shortcomings in the SLBT recommendations arising out of budget guidelines may be corrected/modified by the concerned Programme Directors, with the approval of F.A. and C.E.O.
5. In order to facilitate processing of budget and subsequent issuing of budgetary allocation, in an expeditious manner in the Central Office of KVIC, the details of agreed budget should be uploaded on computers at field office itself. The relevant soft copies (CDs) as well as hard copies separately for Khadi, V.I. and other programmes budget proposals require to be sent / handed over to the respective Programme / Industry Directorates at Central Office for reference and onward processing for submission before SFCs. Entire budget guideline including forms etc. have been uploaded in the KVIC website, may be downloaded. Please note that no budget proposal can be accepted if not sent in soft form (CD).
6. On receipt of budget proposals, Programme Directors shall process the same as per budget guidelines and shall forward to the Directorate of Budget for further scrutiny and examination. Director (Budget) will in turn send the complete proposal to the Directorate of Finance for further examination and for financial concurrence so as to place it before S.F.C. for sanction with the approval of F.A., C.E.O. and Chairperson.
7. For detailed guidelines please refer to the following Annexures attached to this circular:
Annexure-A : Indicative productivity and working
economics for Khadi and Polyvastra
Annexure-B : Guidelines for Khadi/Polyvastra Programme
Annexure-C : Guidelines for Village Industries Programme
and G&M Fund.
Annexure-D : General Guidelines.
8. Institutions, who could not attend the Budget meeting within the specified time limit, may, with the approval of Dy.C.E.O. of the Zone, bring the proposal before the State/Divisional Directors for obtaining the recommendations of the budget proposal on the basis of available infrastructure in working condition, sales outlets, artisans etc… and last approved target by SFC (K) in the prescribed proforma and forward the same to the concerned Industry/Programme Director in the Central Office by 15/02/2009. This will reduce the scope of any supplementary Budget discussion.
9. The expenditure to be incurred for conducting budget discussion may be met out of contingency provision available with respective State/Divisional Offices by observing strict economy measures.
10. Budget guideline was placed before the Commission for discussion and for approval. Commission, while approving the Budget guideline, has given the following direction :-
(a) Unlike the past, SLBT (State Level Budget Team) may be authorized to function effectively in a regular manner throughout the year. Accordingly, SLBT, besides recommending budgetary target allocation of a financial year, for the respective State/Division, shall meet at least once in every quarter, in approving the supplementary budget proposals, reviewing the progress and utilization of Budgetary sanction and examining the Budgetary Control Mechanism.
(b) No Budget proposal will be accepted beyond the deadline as mentioned in Budget guidelines.
(c) State/Divisional Director must ensure the receipt of Budgetary Proposals at the level of respective Khadi/V.I. Directorates in the Central Office, once it it cleared in SLBT. Purposed is to place such proposals in the same, SFC by Khadi as well as by V.I. Directorates.
(d) There are certain instances have come to light where Budget sanctioned for Khadi Woollen activities have been diverted to V.I. activities or and for purchase of some infrastructures not admissible as per prevailing guidelines. A circular to curb such activities has been issued by the Directorate of KPM. It is again emphasized that Budget sanctioned by SLBT, should conform to the existing admissible activities of the institution only. If needed, physical verification of the Institution regarding infrastructure available and activities actually being carried out be also ensured before the budget proposal is finally recommended by SLBT.
(e) It is to be ensured that proper assessment of the need of SC/ST/Minority/ Women institutions as well as the institution of N.E. region is done by SLBT and the budget is approved accordingly.
The tendency of approving the Budget of Rs.1.00 lakhs or so as was observed in 2008-09 to new institutions is not correct and viability of the activities being taken up must be kept in view, while considering such proposal so.
This is issued with the approval of FA, CEO and Chairperson.
Encl: As above. DIRECTOR (BUDGET)
To
1. All State/Divisional Directors — With a request to initiate Immediate action
for the proposed budget discussion.
2. All the Industry/Programme They are requested to advise the
Directors Departmental Units under their
Administrative control to get in touch with
the State/Divisional Offices and to ensure
participation in Budget discussion.
3. All State/UT KVI Boards They are requested to advise their Aided
Institutions and Departmental Units to
initiate necessary action for attending
budget discussion with all required details
as per date, time and venue to be informed
by the KVI State/Divisional Office.
Copy to:-
1. All the Dy. CEOs in the respective State/Zonal Office..
2. Director (Khadi Co-ordination)
3. Director (V.I. Co-ordination)
4. Director (Audit)
5. Director (Administration)
6. Director (Accounts)
7. Director (Finance)
8. Director (I.T.)
9. Director (E & S)
10. Director (Publicity)
11. Director (Marketing)
12. Director (Ec.R)
13. Director (State Board Cell)
14. Director (HRD).
BUDGET Guidelines For Khadi And Polyvastra
ANNEXURE-A
INDICATIVE PRODUCTIVITY WORKING ECONOMICS FOR CALCULATION OF KHADI AND POLYVASTRA PRODUCTION *
Spinning Productivity
Productivity of a Charkha depends upon the type of fibre used for producing yarn, pre spinning processes, condition of the charkha, the skill and the age of the spinner, the atmospheric condition etc. The productivity is usually in terms of number of hanks produced per charkha in 8 hours.
Weaving Productivity
The weaving productivity will depend on the quality of the yarn used for weaving, type and mechanical condition of the loom, operating skill of the weaver and atmospheric conditions etc. Generally in Khadi 70 Cm. (28 inches), 90 Cm. (36 inches), 115 Cm. (45 inches) and 130 Cm. (52 inches) width fabrics is woven.
Note:
1. The productivity norms worked out below both for spinning and weaving are based on optimum productivity (i.e. 100% efficiency). The field offices can work out the actual productivity to the tune of 75% to 80% efficiency based on available infrastructure with the institution while fixing the production target for Khadi and Polyvastra programme.
2. The number of working days is taken as 299 days (52 Sundays and 14 National & Local holidays as non working days).
3. As the local holiday varies from State to State the field offices may calculate the number working days accordingly.
4. The following working economics are indicative only, based on the information gathered from field. The field offices need to work out the actual figure based on the infrastructure and field realities.
5. Man power shown is the minimum requirement for a unit. This may depends on the capacity of unit.
(i) Cotton Khadi Programme
One unit consists of 25 NMC and 10 Looms
Yarn count / Type of charkha / Productivity (No. of Hanks/Charkha/8 hrs.)35s Nm / 8 Spindle NMC / 25 (Average)
Estimated Spinning capacity per unit
No. of Hanks per Charkha per day of 8 hrs. = 25 Hanks
Production per unit per day = 25 Hanks X 25 NMC = 625 Hanks
No. of working days per annum = 299 days
Production per unit per annum = 625 Hanks X 299 days = 186875 Hanks
Production per unit per annum in Kgs. = 186875
35 Nm
= 5339 Kgs.
Cost of yarn per Kg. (@ Rs. 5.43 Per Hank)* = Rs. 5.43 X 35 Nm
= Rs. 190.05
Total production value per unit per annum = 5339 Kgs. X Rs. 190.05
= Rs. 1014677/-
Say = Rs. 10.00 Lakhs
Estimated Weaving capacity per unit
No. of meters per loom per day of 8 hrs. = 8 mtrs.
Production per unit per day = 8 mtrs. X 10 looms = 80 mtrs.
No. of working days per annum = 299 days
Production per unit per annum = 80 mtrs.X299 days = 23920 mtrs.
Cost of Khadi cloth-Average rate per mtr. = Rs. 65/-
Total production value per unit per annum = 23920 mtrs. X Rs. 65/-
= Rs. 1554800/-
Say = Rs. 15.00 Lakhs
Man Power
Spinners : 25
Weavers : 10
Other artisans : 05 (warping & winding)
Salaried Staff : 02 (instructors)
Total : 42
(ii) Muslin Khadi Programme
One unit consists of 50 Charkhas and 10 Looms
Yarn count / Type of charkha / Productivity (No. of Hanks/Charkha/8 hrs.)100-120 Nm / 7 Spindle NMC / 20 ( Average)
Estimated Spinning capacity per unit
No. of Hanks per Charkha per day of 8 hrs. = 20 Hanks
Production per unit per day = 20 Hanks X 50 NMC = 1000 Hanks
No. of working days per annum = 299 days
Production per unit per annum = 1000 Hanks X 299 days= 299000 Hanks
Production per unit per annum in Kgs. = 299000
100 Nm
= 2990Kgs.
Cost of yarn per Kg. (@ Rs. 5.67 Per Hank)* = Rs. 5.43 X 100 Nm
= Rs. 543
Total production value per unit per annum = 2990 Kgs. X Rs.543
= Rs. 1623570/-
Say = Rs. 16.00 Lakhs
Estimated Weaving capacity per unit
No. of meters per loom per day of 8 hrs. = 6 mtrs.
Production per unit per day = 6 mtrs. X 10 looms = 60 mtrs.
No. of working days per annum = 299 days
Production per unit per annum = 60 mtrs.X299 days = 17940 mtrs.
Cost of Muslin Khadi cloth-Average rate per mtr. = Rs.110/-
Total production value per unit per annum = 17940 mtrs. X Rs.110/-
= Rs.1973400/-
Say = Rs.20.00 Lakhs
Man Power
Spinners : 50
Weavers : 10
Other artisans : 10 (warping & winding)
Salaried Staff : 02 (instructors)
Total : 72
(iii) Silk Khadi Programme
One unit consists of 10 Basins and 20 Looms
Estimated Reeling capacity per unit
Average production per basin per day of 8 hrs. = 900 Gms