write about the most popular employment generation programme
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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.
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.
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.
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.
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.
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.
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