Boost your Khadi Business with the RISC Scheme

Khadi business in India has been on the upswing recently with the Government introducing its new benefits to promote this sector. However, some entrepreneurs do not possess enough capital to expand their business. To solve this issue, the government has come up with the RISC scheme.

Overview

The RISC scheme assists you to get your business established and produce quality products for sale.

Under this scheme, The Rural Industry Service Centre (RISC) aims to provide infrastructural support and necessary services to the Khadi entrepreneurs to upgrade their production capacity, skill upgradation and market promotion.

Below mentioned is the list of agencies implementing the same:

  • Khadi Village Industries Commission and State Khadi Village Industries Board
  • Khadi and Village Industry Institutions connected with KVIC and KVIBs
  • National, State-level Khadi and Village Industry Federations
  • NGOs that have already worked in implementation of a programme and exclude the negative list of KVIC with financial assistance for minimum 3 projects from any Ministry of State, Central Government, Council for the Advancement of People’s Action and Rural Technology, National Bank for Agriculture & Rural Development and UN agencies.

Following are the details regarding the financial arrangement for the entrepreneurs who wish to apply for this scheme: 

Khadi and Village Industries Commission (KVIC) will bear a substantial portion of the cost of the project – whether it is for provision of training or to procure machinery. The applicant would have to bear the rest as a loan.

The following table explains the split between KVIC and the Khadi entrepreneur:-

Financial Pattern NE States Other areas
a) KVIC’s Share 90%* 75%
b) Own Contribution or Loan from Bank/Financial Institutions 10% 25%

 

*In case of North Eastern States 90% of project cost will be provided by KVIC up to a project cost of Rs.5.00 lakhs.

Also, there will be a cap on the amount that KVIC would contribute to a specific project. Following is the detailed information for the same:

Type of project KVIC’s contribution
Building/Infrastructure Maximum 15% of project cost.
Plant & Machinery for manufacturing and or testing facilities and packaging Minimum 50% of project cost
Raw material /new design, product Diversification, etc. Maximum 25% of project cost.
Skill upgradation & training  and/ or  Product catalogue Maximum 10% of Project cost.

 

Benefits

How can a Khadi Entrepreneur benefit from this scheme?

In accordance to the RISC scheme, a Khadi entrepreneur can receive assistance with the following activities.

  • Provide testing facilities by establishing laboratory to ensure quality of the products
  • Make available improved machinery/equipment to be utilised as common utility facilities by the nearby unites /artisans to enhance production capacity or value addition of the product
  • Provide attractive and appropriate packaging facilities and machineries to the local unties / artisans for better marketing of their products
  • Make available training facilities to upgrade artisan’s skill in order to increase their earnings.
  • Provide new design or new product, diversified product in consultation with experts /agencies for a value addition of rural manufacturing units
  • Make available raw material support which mainly depend on seasonal procurement
  • Prepare product catalogue

Eligibility Criteria:

What is the eligibility criteria for this scheme?

The Khadi Entrepreneur needs to fall in the following list of Khadi and Village Industry (KVI) to be eligible for the RSIC Scheme

  • Khadi and Poly Vastra post weaving value addition facilities.
  • Herbal products: Cosmetics and Medicines
  • Edible Oil
  • Soaps and detergents
  • Honey
  • Hand Made Paper
  • Food processing
  • Bio-Pesticides, Bio Manure, and Bio-Fertilizer
  • Potteries
  • Leather
  • Woodwork
  • All other V.I. except those which are in the negative list 

Application

How can a Khadi entrepreneur apply for this scheme?

A Khadi entrepreneur can apply for this scheme by visiting/ contacting the nearest RISC.

Click here to gain information about the various KVIC Courses and center details.