State PCS - Maharashtra (MPSC)

• 04 Jul 2025

Khadi and Village Industries Commission (KVIC)

Why in News? 

The Union Micro, Small & Medium Enterprises (MSME) Minister visited the Khadi and Village Industries Commission (KVIC) in Mumbai to review its performance, achievements, challenges, and future roadmap for strengthening its initiatives. 

• The Minister reviewed key flagship schemes– Prime Minister’s Employment Generation Programme (PMEGP), which is under KVIC.

Key Points

• Khadi and Village Industries Commission (KVIC): 
  • It is a statutory body established under the KVIC Act, 1956 and functions under the Ministry of Micro, Small & Medium Enterprises.  
    • Its head office is based in Mumbai, with its six zonal offices in Delhi, Bhopal, Bangalore, Kolkata, Mumbai and Guwahati. 
  • Objectives of KVIC: 
    • KVIC aims to generate employment opportunities, especially in rural areas, fulfilling a core social objective. 
    • It focuses on the economic objective of producing marketable and saleable products through village industries. 
    • It works toward the broader goal of fostering self-reliance among the poor and strengthening rural community spirit.

Prime Minister’s Employment Generation Programme (PMEGP) 

• Launch: 
  • The Government of India approved the introduction of a credit linked subsidy programme called Prime Minister's Employment Generation Programme (PMEGP) in 2008 for the generation of employment opportunities through the establishment of micro enterprises in rural as well as urban areas. 
  • It allows entrepreneurs to set up factories or units. 
• Administration: 
  • It is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). 
  • Implementing Agency at the National Level: Khadi and Village Industries Commission (KVIC).