DIRECTORATE OF KHADI RAW MATERIAL

KHADI AND VILLAGE INDUSTRIES COMMISSION

3, IRLA ROAD, VILE PARLE (W), MUMBAI-56

Phone/Fax : 022-2620 7624, E-mail :

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No.DKRM/CSPs/Gen/Supply Policy/2011-12/ Date: 10.05.2011

CIRCULAR

The Credit Policy for supply of Raw Materials for Khadi & Polyvastra by CSPs to Khadi Institutions for 2011-12 has been approvedby KVIC in its meeting held on 29.04.2011.

1.The supply of Raw Materials, on credit, will be made to the institutions against specific recommendation of State/Divisional Directors of the Commission as per the formula mentioned below:

"Total Market Development Assistance (MDA) Claim arising out of budgetary allocation of respective year (+) Margin Money paid by the institution (-) CBC Interest/Installment (=) Credit Supply of Roving/Sliver."

2.Since the payment of MDA to the institution to be made on quarterly basis, State Director/Divisional Director should ensure the recovery of sliver/roving dues from MDA of Khadi Institutions quarterly, as per schedule given below :

Quarter / Date by which the dues to be recovered from MDA by SO/DO
Quarter I / 15th August
Quarter II / 15th November
Quarter III / 15th February
Quarter IV / 15th May

3.Project Manager of CSPs should submit the report of sliver/roving dues and recoveries made by State/Divisional Offices on quarterly basis to Director (KRM) and to State Director/Divisional Director concerned.

4.20% margin money is to be collected from all the institutions for supply of sliver/roving from the CSP throughout the year.

5.The raw material will be supplied, preferably for 4 months consumption/or less at a time, keeping in view the targets approved by SFC and as per the above formula. If the targets approved by SFC are not received by S.O./D.O., the raw materials will be supplied on credit from CSPs to institutions by considering the actual Khadi & Polyvastra production of the institution for the year 2010-11.

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6.The State/Divisional Directors while recommending supply of raw material on credit should also see the stock of raw material with the institution on the date of re-order.

7.Those institutions who are defaulter for more than 3 years should not be recommended for supply of raw material on credit.

8.The credit policy shall be applicable to the institutions which are assisted by KVIC or State KVI Boards.State Boards will be treated at par with the institutions for the purpose of application of the credit policy.

9.This policy is also applicable for silk and woolen khadi programme.

10.This policy shall come into force from the date of issue of this circular.

All the Directors of State/Divisional Offices should bring the contents of this Circular to the notice of the institutions/Boards and ensure enforcement of the policy in the interest of Khadi and Polyvastra programme.

(J. S. Mishra)

CHIEF EXECUTIVE OFFICER

To

  1. All State & Divisional Directors
  2. Chief Executive Officer of all State/UT KVI Boards
  3. All Project Manager of Central Sliver Plants of KVIC.

Copy to:

  1. All Zonal Dy. Chief Executive Officers of KVIC
  2. All Commission Members
  3. Director (KC)
  4. Director (KPM)
  5. Director (Accounts)
  6. Director (CCC)
  7. Director (Inspection)
  8. Director (Finance)
  9. Director (Publicity) with a request to publish it in the ensuing issue of Jagriti.
  10. Director (DIT) for placing it on KVIC’s website
  11. Director (State Board Cell)
  12. Director (KD)
  13. Director (SFURTI)
  14. OSD to CEO
  15. A.O. to F.A.
  16. Circular file

DIRECTOR (KRM)