10
OFFICE OF THE COMMISSIONER FOR
KHADI AND VILLAGE INDUSTRIES
3, IRLA ROAD, VILE-PARLE (WEST),MUMBAI-400 056.
No.REGP/M-768/NA/2005-06 Date: 19th July, 2005
OFFICE ORDER No :1982
Sub: Introduction Of Nodal Agency For Qualitative Improvement In Implementation
Of REGP Scheme Under Various Village Industries As Well As Social Categories.
In the REGP review meeting held on 08-02-2005 at Gandhi Darshan, New Delhi under the chairmanship of Commissioner for KVI and the meeting held on 09.02.2005 at Udyog Bhavan in the Ministry of SSI & ARI under chairmanship of Joint Secretary, Ministry of ARI, New Delhi, it was emphasized that the implementation of the REGP programme has to be qualitatively improved. There is a need to focus on achieving the targets Industrywise and Social categorywise, set for REGP programme. At present, the targets fixed for the Social category like ST/SC/Minorities, Physically Handicapped, Ex-servicemen, Women, etc. as well as Agro Based Food Industry projects are not being achieved in every State/Union Territory. It was also observed that the only grass-root level agency presently involved in the implementation of the scheme is State/UT Khadi & V.I. Boards, which have Offices upto District level. While in certain States/ Union Territories, the KVI Boards have been performing well, there are many States/ UTs where the KVI Boards have to gear up their machinery to show better performance. The Field Offices of KVI are handicapped since they do not have District level machinery. It was, therefore, recommended during the discussion and a need was felt to identify and recognize Governmental/Semi-Governmental, Developmental and/or professional agencies having good infrastructure and capacity to reach the required target segments, so that they may be recognized for the purpose of :
(a) creating awareness about REGP scheme
(b) identifying potential rural artisans / entrepreneurs
(c) generating suitable project proposals from the required Social as well as industry categories and
(d) providing guidance in project formulation and support till submission of project proposals to the Banks, etc.
This would also serve the purpose of providing alternative channel for the potential rural artisans/ rural entrepreneurs (applicants) in their vicinity and in turn create transparency and openness in the system of sponsoring of project proposals to the Banks. The issue was also discussed and agreed in principle in the deliberations with Secretary (SSI & ARI) at Mumbai on 09.04.2005 and 24-5-2005.
It has, therefore been decided that concept of Nodal Agency will be introduced for ensuing qualitative improvement in and strengthening the REGP programme as per the following modalities:-
1) Role of the Nodal Agency:-
The Nodal Agency will carry out the following functions:-
a) Create awareness about REGP programme and identify potential rural artisans / rural entrepreneurs and Self Help Groups etc. in their area of operation. For this purpose, they will be provided promotional support for inputs like Entrepreneur Awareness Programme (EAP), Rural Artisans / Entrepreneurs Workshops, etc. as per norms.
b) Provide guidance and prepare project proposals and RICS support for the potential rural artisans / rural entrepreneurs / Self Help Groups (SHGs) and other eligible applicants.
c) Sponsor and forward the project proposals as per Standard format by fully adhering to KVIC guidelines, norms and targets to the concerned Bank, under intimation to KVIC Field Office/KVI Board.
d) Maintain data regarding the REGP applicants and their project proposals and make the details available on fortnightly basis to KVIC Field Offices/KVI Board.
e) Maintain E-communication with the Field Offices of KVIC/KVI Board.
f) To Conduct EDP training for the beneficiary once the project is sanctioned. Where the Departmental Training Centres of KVIC/KVIB and Non-Departmental Training Centres of KVI are available, first preference for such assignment shall be given to them and then to Nodal Agencies subject to availability of infrastructure and manpower with the agency.
2) Modalities:-
(a) The Nodal Agency will create awareness amongst target beneficiaries of REGP through Awareness Camps for Rural Artisans / Rural Entrepreneurs, Workshops, etc., shortlist potentials and interested individuals / SHGs and link them to RICS.
(b) The RICS, which may also be run by Nodal Agency, will assist in project formulation and Detailed Project Reports (DPRs) may be forwarded on the standard sponsoring letter devised by KVIC to Bank with endorsement to the concerned office of KVIC and KVI Board for information and monitoring purpose.
(c) Once the system of Nodal agencies get stabilized, the KVIC Field Offices will not entertain project proposals from the applicants directly. A Helpline will be set-up in each Field Office, which will provide information on the status of each project proposal online to the Nodal Agency, who in turn can provide necessary information to its caller / applicant. KVIC Field Offices will concentrate on role of supervision and monitoring, data collection, target allocation and achievement thereof, physical verification, etc. The Field Offices of KVIC will also track and follow up the project proposals with the concerned Banks and get data regarding project sanction or project rejection for further action. In case of rejections, the reasons thereof will also be collected from the concerned Bank in a prescribed manner and the detailed process of such data collection will be computerized. The information regarding project sanction and rejection will be web-based and shall be available to the Nodal Agency sponsoring the applications for corrective action and for performance evaluation of Nodal Agency by Field Offices.
The State/UT KVI Board will continue to act as a Nodal Agency, which will continue to forward the project proposals of applicants directly to the Banks alongwith the Standard Application format devised by KVIC with the rider that the information pertaining to number of project proposals shall be sent promptly to KVIC Field Offices as well as details about projects sanction and rejection thereof, through online Software as well as periodical progress reports.
(d) Any rural artisan/ rural entrepreneur/Self Help Group or any other eligible organization may continue to approach Banks directly for sanction of his/her/their project alongwith the Standard application format devised by KVIC.
3) Eligibility:-
The Nodal Agency will be identified District wise, Divisional Office-wise /State wise on the following criteria:-
a) National/State Level Government Agency/Organizations dealing in Industrial Promotion and Technical Consultancy, Rural Development, Social Welfare, providing Technical Consultancy Services, Training etc. e.g. SC/ST Minorities Development Finance Corporations, Women Development Organization, Handicapped Welfare Organization, Ex.-Servicemen Welfare Boards, State EDP Institutes at Divisional/ State / District Level, having requisite infrastructure and manpower etc.
b) Professional Institutions/Technical Colleges recognized by Government/University and UGC/ AICTE having department for vocational guidance or technical courses providing skill based training like ITI, Rural Polytechnic, Food Processing Training Institute, etc.
c) National/State Level Autonomous Institutions/Organizations NGOs having at least five years experience and expertise in Project Consultancy, in Small Agro & Rural Industries Promotional and or Training and having requisite infrastructure and manpower and capable of reaching Village and Taluka Level in the State or Districts . NGOs should have been funded by State or National level Government Agency for any of its programme in previous years.
d) Certified Khadi Institutions aided by KVIC/KVIB, provided these are in category A+, A or B and are having required infrastructure, manpower and expertise for the role.
e) Departmental and Non-Departmental Training Centres of KVIC/KVIB.
4) Financial Assistance for Organizing Promotional Events
Financial assistance (Grant) shall be provided for organizing Entrepreneurs Awareness Camps, Entrepreneurs’ Workshop, REGP exhibition as per norms of KVIC, to the Nodal Agency. However, the quantum and number of such events shall have to be got approved from concerned State / Divisional Directors of KVIC for each financial year.
5) Source of Revenue Generation for Nodal Agency:-
As regards, RICS activity, consultancy / service charge as applicable will be levied for the services rendered as RICS by Nodal Agencies to the potential beneficiaries for preparation of Detailed Project Report (DPR) in terms of our Circular No. REGP/RICS/M-728/Proc. Training / 2004-05 dated 22-3-2005.
For EDP, the Nodal Agency will get the reimbursement as per pattern of financial assistance in vogue.
6) Format for submission of project proposal.
A Standard Application Forma for submission of project proposal by the intended beneficiary, through the Nodal Agency is as detailed in the enclosed Annexure-I.
Further, it is informed that the standard application format (Annexure-I) enclosed herewith must be submitted along with Project Report to the financing Bank Branch without fail by the rural artisan/entrepreneur /SHGs etc. for availing Bank credit under REGP scheme of KVIC. The said format may be printed by the field offices of KVIC utilizing the funds provided for promotional activities and make available to the potential entrepreneurs/ artisans with advice to make the application in multiple copies and ensure to furnish copies thereof concurrently to all the agencies such as KVIC, KVIB, RICS, Nodal agency and Controlling office of the concerned Bank. One copy of the application format should be retained by the applicant for future reference. The system of application shall become a means of monitoring the REGP projects whether submitted to Nodal Agency, KVIB or directly to the Bank.
7) Web-Based Data System:-
Web-based Data System will be installed in the Field Offices and there will be connectivity between the Field Offices, concerned Khadi & VI Board, Bank and Central Office. The required data will be made available on the website by the concerned Field Office, so that the same could be accessed by Central Office, Ministry of ARI and Resident Representative’s Office in New Delhi, as and when required.
8) Selection Method for Nodal Agency:-
Applications for enlistment as a Nodal Agency State/Divisional office wise will be invited through public advertisement in the leading local newspapers by the concerned State/Divisional Directors of KVIC. The following empowered Committee at field level will scrutinize the applications and select the Nodal agency (ies):-
1) / Zonal Head of the KVIC / : / Chairman2) / State/Divisional Director, KVIC / : / Member
3) / Chief Executive Officer of KVIB or his /her representative / : / Member
4) / Representative of State Government like Director of Industries / Cottage & SSI for Rural Development. / : / Member
5) / Representative of SLBC / : / Member
6) / Dy. C.E.O/REGP or Director/REGP / : / Special Invitee
*7) / Assistant Director, KVIC / : / Member/Convenor
* Where there is only one officer of Gazetted Rank, viz. Director / Dy. Director or Asstt. Director, the incumbent State / Divisional Director will function as Member Convenor.
The Committee will meet every quarter to screen and select Nodal Agencies as well as to review their performance. Secretarial services to the Committee will be provided by office of the concerned State / Divisional Director in the field.
Field Directors of KVI are therefore advised to immediately start the task of identifying Nodal Agencies through public advertisement in their State/Division. Applications from prospective Nodal Agencies may be invited as per prescribed application format enclosed vide Annexure – II and set in motion the process of empanelment as per laid down procedure. This work should be completed within three months period from the date of issue of this Order.
9. Financial Rangewise Target for Nodal Agency running RICS activity:-
In order to ensure that small project upto Rs.2.00 lakhs where no consultancy charge is levied, are not discouraged by the Nodal Agency, a minimum Target of 10% of the total projects formulated and sponsored by the Nodal Agency should be covered within the financial range-wise projects costing upto Rs.2.00 lakhs. At least 80% of the rural projects should be falling within the financial range over Rs.2.00 lakhs and upto Rs.10.00 lakhs.
10. Termination clause :
The empanelment of the Nodal Agency will be for a period of two financial years and will be subjected to a quarterly review every year. In case it is found that the performance of Nodal Agency is not satisfactory, KVIC reserves its right to cancel the empanelment by giving one month notice. The Nodal Agency and KVIC can also cancel the empanelment by giving written one month notice to each other, in case either of the party is not interested to carry out the association any further.
11. Indemnity clause :
The Nodal Agency will indemnify KVIC towards any damage, loss, expenditure that may arise due to any wrong deeds or misrepresentation or non-performance by the Nodal Agency and KVIC will be in no way responsible for any acts or omission committed by Nodal Agency.
The present system of forwarding the projects by KVIC/KVIB as well as approaching the Banks directly will continue till the Nodal Agencies and KVIBs are found to be fully competent to achieve the targets after which the Field Offices of KVI will withdraw from the role of forwarding / sponsoring project proposals to the Banks and concentrate on supervision, monitoring and improving the quality of REGP programme.
The Field Directors are instructed to take immediate action on the above subject and report compliance.
Encl.:- (I) Standard Application format (Annexure - I)
(II) Application Form for Nodal Agency (Annexure – II)
( Maya S. Sinha )
CHIEF EXECUTIVE OFFICER
To
All State/Divisional Directors in and outside Mumbai.
Copy to:-
1. Joint C.E.O.
2. C. V. O.
3. All Dy. CEOs at C.O.
4. Dy. CEO (NEZ), Guwahati.
5. Director (IT); for putting on website of KVIC.
6. All Programme / Industry Directors
7. All State/UT KVI Boards
8. All Training Centres under OCKVI / KVIBs.
9. All RICS Cells.
10. Commissioner’s Secretariat / C.E.O.’s Cell / F.A.’s Cell.
ANNEXURE-I
STANDARD APPLICATION FORMAT FOR AVAILING BANK CREDIT UNDER REGP SCHEME OF KVIC TO BE SUBMITTED BY AN APPLICANT
(RURAL ARTISAN /RURAL ENTREPRENEUR / SOCIETY/NGO)
From :
Full Name and full postal address of Applicant with
Pincode Number, Phone Number with STD code,
Fax Number, E-Mail ID.)
To:
The Branch Manager,
______Bank,
______Branch
Full Postal Address ______
______
______
Subject : Submission of Project proposal for sanction of Bank Credit