Patna, Nov 27: The Khadi and Village Industries Commission (KVIC) is planning to involve panchayati raj institutions for the implementation of its programmes in rural areas. The commission also seeks the help of the local bodies in identifying prospective entrepreneurs for its new margin money scheme.

Addressing a press conference here on Wednesday, KVIC chairman Surendra Mohan said that "the commission has identified about 110 industries for which it would provide 25 per cent of the total cost of the project as margin money, with the entrepreneurs' share of 10 per cent."

He said that the KVIC funds would be available for the projects to be set up in the rural areas only. According to the Reserve Bank of India (RBI) instructions to the local nationalised banks, the entrepreneurs are eligible to get financial assistance for setting up of such projects, Mohan said. The commission would pay Rs 10 lakh or 25 per cent of the project cost as margin money by way of subsidy. An additional benefit would be provided for projects ranging between Rs 11 lakh and Rs 25 lakh. Entrepreneurs from the weaker sections of the society would get 30 per cent of the project cost as margin money, Mohan added.

The commission has also placed Rs 132 crore with the nationalised banks for funding such projects during the current fiscal which is likely to create a few lakh jobs in the rural areas. The nationalised banks have agreed to provide more funds for the scheme in future. KVIC has also introduced an insurance scheme for the weavers attached to the commission.

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