KVIC Act English

8/14/2019 KVIC Act English

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Neither I wish for kingdom nor I aspire for heaven,nor I desire for rebirth.

I desire the end and annihilation of suffering andpain of all beings.

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OBJECTIVES

The social objective of providing employment

The economic objective of producing saleable

articles

The wider objective of creating self-reliance

amongst the people and building up of a strong

rural community spirit

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PREAMBLE

The KVIC Act, 1956 came into force w.e.f. 1956 and it

extends to the whole of India except the State of

Jammu and Kashmir.

The Act was enacted to provide for the establishment

of a Commission for the development of Khadi and

Village Industries and for the matter connected

therewith. Certain major amendments to the Act had

taken place in July, 1987 and March, 2006.


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Objects and Reasons With a view to promoting and developing Khadi and Village

Industries, the Central Govt. constituted a Board called the All India

Khadiand Village Industries Boardand vested it with powers to

prepare and organize programmes for the production and

development of Khadi and Village Industries and to deal with other

matters incidental thereto .

Subsequently, it was proposed to set up a Commission, called All

India Khadi and Village Industries Commission, which will be

vested with the powers, executive as well as administrative, for the

proper development of Khadi and Village Industries.

The bill also provide for the All India Khadi and V.I. Board

functioning as an advisory body, which will advice the Commission

generally in the discharge of its duties.


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Establishment and constitution of Commission Section 4 of the KVIC Act provides for the

establishment of the Commission. According toSection 4 (1), the Commission shall be a body

corporate having perpetual succession and a common

seal, with power to acquire, hold and dispose of

property and to contract, and may by the said name

sue and be sued.

According to Section 4 (2), the Commission shall

consist of the following members appointed by the

Central Government, namely:-

(a) six non-official members having specialized

knowledge and not less than ten years of

experience of khadi or village industries and

representing such six geographical zones of

the country, as may be prescribed; Contd..


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Establishment and constitution of Commission

(b) four non-official members of whom each membershall be from the following disciplines, namely:-

(i) one member having expert knowledge andexperience in Science and Technology;

(ii) one member having expert knowledge andexperience in Marketing;

(iii) one member having expert knowledge andexperience in Rural Development; and

(iv) one member having expert knowledge andexperience in Technical Education andTraining;

Contd..


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Establishment and constitution of Commission(ba) the Chairman of State Bank of India constituted

under sub-section (1) of section 3 of the State Bankof India Act, 1955 or an officer not below the rank of

the Deputy Managing Director as may be nominated

by the Chairman of the State Bank of India - ex-

officio;

(c) a Chief Executive Officer, ex-officio; and

(d) a Financial Adviser, who shall also be the Chief

Accounts Officer of the Commission, ex-officio.

The Central Government may appoint one of the

members appointed under clause (a) of sub-section

(2) to be the Chairman who shall be a full time

member.


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Powers and functions of C.E.O.

According to Section 5 (1), subject to the provisions

contained in sub-section (1A) of section 4, the Chief

Executive Officer, appointed under clause (c) of sub-

section (2) of section 4, shall exercise such powers and

discharge such functions in respect of generalsuperintendence over the affairs of the Commission and

its day-to-day management, as may be prescribed.

(1A) Without prejudice to the powers and functionsreferred to in sub-section (1), the Chief Executive Officer

shall exercise such powers and discharge such functions

under the general superintendence, direction and

management of the Commission.


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National Khadi V.I. BoardIn order to assist the Commission for discharging of its functions as

defined under Section 10(1) of the Act, the Central Government may,

by notification in the Official Gazette, constitute a Board to be called

the National Khadi and Village Industries Board consisting of a

Chairman and 50 No. of other members (Rule-15) as the Central

Government think fit, chosen from among persons who, in theopinion of the Central Government, are qualified as having had

experience, and shown capacity, in matters relating to the

development of khadi and village industries.

The Board shall meet at least twice in a year [Section 10(3)].Eighteen Members of the Board shall form a quorum (Rule-16).

The Members of the Board shall hold office for such period not

exceeding three years as may be specified in the notification of their

appointment and shall be eligible for reappointment (Rule-17).


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Zonal Committee(d) the State Directors in charge of the Commission's

Directorates for the States in the zone - member;

(e) a Zonal or Regional manager of one of the lead

banks operating in the zone - member; and

(f) one representative of an institution of repute,working for at least ten years in the khadi or village

industries sector member.

The term of the office of the members of the ZonalCommittee shall be co-terminus with the term of the

Commission. The Zonal Committee shall generally

function as a forum for consultation [Sec 12(A) (4)].


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Term of the CommissionAccording to Section 13(1), every member of the

Commission, other than an ex-officio member, shall

hold office at the pleasure of the Central

Government which shall not exceed continuous

period of five years;

Provided that the Chairman shall, notwithstanding

the expiration of his term, continue to hold office

until his successor enters upon his office.

Commission Members appointed under clauses (a),

(b) and (ba) of sub-section (2) of section 4 of the

Act, except the Chairman, shall be part-time

members.


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Functions of the Commission

According to Section15 (1), subject to theprovisions of this Act, the functions of the

Commission shall generally be to plan, promote,

facilitate, organize and assist in the establishment

and development of khadi and village industries in

the rural areas in coordination with other

agencies.

(2) In particular, and without prejudice to the

generality of the foregoing power, theCommission may take such other steps as it may

think fit,

Contd..


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Functions of the Commission(a) to plan and organize, directly or through specified

agencies, training of persons employed or desirousof seeking employment in khadi and village

industries;

(b) to build up, directly or through specified agencies, theprocurement and supply of raw materials;

(c) to encourage and assist in the creation of common

service facilities as well as production and marketing

of khadi or products of village industries ;

(d) to promote the sale and marketing of khadi or

products of village industries or handicrafts;

Contd


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Functions of the Commission(e) to encourage and promote research in the

technology used in khadi and village industries,including the use of non-conventional energy and

electric power;

(f) to undertake directly or through other agencies

studies of the problems of khadi or village

industries;

(g) to provide financial assistance, directly or through

specified agencies, to institutions or persons forthe cause of design development, prototypes and

other technical information;

Contd


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Functions of the Commission(h) to undertake, directly or through specified

agencies, experiments, or pilot projects which inthe opinion of the Commission are necessary for

the development of khadi and village industries;

(i) to establish and maintain separate organizationsfor the purpose of carrying out any or all of the

above matters;

(j) to promote and encourage cooperative efforts

among the manufacturers of khadi or personsengaged in village industries;

Contd


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Functions of the Commission

(k) to ensure genuineness and to set up standards of

quality and ensure that products of khadi and

village industries; and

(l) to carry out any other matters incidental to theabove.

Specified agencies means the agencies which

the Central Government may, by notification in theOfficial Gazette, specify in this behalf.


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Power to give direction by Central Govt.

According to Section 16, in the discharge of its

functions under this Act, the Commission shall be

bound by such directions as the Central

Government may give to it.


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Funds of the CommissionAccording to Section 17, the Central Government may,after due appropriation made by Parliament by law in this

behalf, pay to the Commission in each financial yearsuch sums as may be considered necessary for theperformance of the functions of the Commission underthis Act.

As per Sec 17(A), the Commission may for the purpose ofdevelopment of khadi, the development of villageindustries or the development of khadi and villageindustries, receive gifts, grants, donations orbenefactions from the Government or any other person.

As per provision of Sec 18 (1), the Commission shallhave three separate funds to be called the khadi fund, thevillage industries fund and the general andmiscellaneous fund.

Sec 19 (A), deals with the constitution of Standing

Finance Committee in respect of each of the three fundsreferred to in Sec 18.


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Recovery of ommissions dues

According to Section 19B, any sum payable to theCommission under any agreement expressed orimplied, or otherwise howsoever, may berecovered in the manner as an arrear of landrevenue.

The procedure for recovery of the dues of theCommission has been stated under Rule-29 of theCommission Rules 2006.

Any dispute arising out of the process of recovery

of dues shall be referred to a Tribunal to beconstituted by Central Govt. acting on the poweras stated under Sec 19B of the Act and Rule-30 ofKVIC Rules.


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Submission of Budget

According to Section 20 (1), the Commissionshall, by such date in each year as may beprescribed, prepare and submit to the CentralGovernment for approval three separate budgetsin the prescribed form for the next financial year,

to be called the Khadi Budget, Village IndustriesBudget and General and Miscellaneous Budget.

The preparation and submission of budgetestimate has been defined under Rule-22 for everyfinancial year commencing from 1st day of the

April and ending on 31st day of March to beprepared or caused to be prepared by FinancialAdviser in advance of the date fixed in sub-rule (4)in accordance with sub-rule (6).


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Audit of Accounts of the CommissionAccording to Section 23 (1), the Commission shall

maintain an annual statement of accounts, includingthe profit and loss account and the balance sheet in

such form as may be prescribed by the Central

Government in consultation with the Comptroller

and Auditor General of India.

(2) The accounts of the Commission shall be audited

by the Comptroller and Auditor General of India at

such intervals as may be prescribed by him.

Contd


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Audit of Accounts of the Commission(3) The Comptroller and Auditor General of India,

and any person appointed by him in connectionwith the audit of the accounts of the Commission,

shall have the right to demand the production of

books, accounts, connected vouchers and other

documents and papers and to inspect any of theoffices of the Commission.

(4) The accounts of the Commission as certified by

the Comptroller and Auditor-General of India or any

other person appointed by him in this behalftogether with the audit report thereon shall be

forwarded annually to the Central Government and

that Government shall cause the same to be laid

before each House of Parliament.


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Submission of Reports and Returns to Govt.According to Section 24 (1), the Commission shall

furnish to the Central Government, at such timeand in such form and manner as may be

prescribed or as the Central Government may

direct, such returns and statements and such

particulars in regard to any proposed or existingprogramme for the promotion and development of

khadi and village industries, as the Central

Government may, from time to time, require.

As per Sec 24 (3), a copy of the report receivedunder sub-section (2) shall be laid before each

House of Parliament.


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According to Section 25 (1), the Central Government

may, by notification in the Official Gazette, direct thatthe Commission shall be dissolved from such date

as may be specified in the notification and thereupon

the Commission shall be deemed to be dissolved

accordingly.

(2) On and from the said date

(a) all properties and funds which, immediately

before the said date, were in the possession of

the Commission for the purposes of this Act

shall vest in the Central Government; and

(b) all members shall vacate their office as members

of the Commission.Contd.

Dissolution of Commission


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(3) Any time after the issue of the notification under

sub-section (1), the Central Government may re-establish the Commission in accordance with the

provisions of section 4 and on and from the date of

the re-establishment of the Commission, the

properties and funds which had previously vested inthe Central Government under clause (a) of sub-

section (2) shall stand vested in the Commission so

re-established.

Dissolution of Commission


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THANK YOU

KVIC Act English

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Transcript of KVIC Act English