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THE KHADI AND VILLAGE INDUSTRIES COMMISSION ACT, 1956

Title : THE KHADI AND VILLAGE INDUSTRIES COMMISSION ACT, 1956

Year : 1956

[Act, No. 61 of 1956]
[25th September, 1956]

PREAMBLE

An Act to provide for the establishment of a Commission for the development of Khadi and Village Industries and for matters connected therewith.

BE it enacted by Parliament in the Seventh Year of the Republic of India as follows:-



(1) This Act may be called The Khadi and Village Industries Commission Act, 1956.

(2) It extends to the whole of India except the State of Jammu and Kashmir.



In this Act, unless the context otherwise requires,-

(a) "The Board" means the Board constituted under1[section 10];

(b) "Chairman" means the chairman of the Commission;

(c) "Commission" means the Khadi and Village Industries Commission established under section 4;

1*[(cc) "Fixed capital investment" includes investment in plant and machinery and land and building of an industry;]

(d) "Khadi" means any cloth woven on handlooms in India from cotton, silk or woolen yarn handspun in India or from a mixture of any two or all of such yarns;

(e) "Member" means a member of the Commission2[and includes the chairman3[* * * *];

(f) "Prescribed" means prescribed by rules made under this Act;

4*[(ff) "Rural area" means the area comprised in any village, and includes the area comprised in any town, the population of which does not exceed6[twenty thousand] or such other figure as the Central Government may specify from time to time;]

3[(g) ***]

3[(gg) ***]

5*[(h) "Village industry" means,-

(i) Any industry located in a rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed7*[one lakh rupees] or such other sum as may, by notification in the Official Gazette, be specified from time to time by the Central Government;

Provided that any industry specified in the schedule and located in an area other than a rural area and recognised as a village industry at any time before the commencement of the Khadi and Village Industries Commission (Amendment) Act, 1987 shall, notwithstanding anything contained in this sub-clause, continue to be a village industry under this Act;

8*[Provided further that in the case of any industry located in a hilly area, the provisions of this sub-clause shall have effect as if for the words "one lakh rupees", the words "one lakh and fifty thousand rupees" had been substituted.].

(ii) Any other non-manufacturing unit established for the sole purpose of promoting, maintaining, assisting, servicing (including mother units) or managing any village industry;]

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1. Substituted for the words "section 9" by the Repealing and Amending Act, 1957 (36 of 1957), Section 3, second Such.

2. Substituted for "and includes chairman" by Act 32 of 1961, section 2 (28-8-1961).

3. Words "and the Vice-chairman" and clauses (g) and (gg) omitted, by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), Section 2 (24-7-87).

4. Inserted by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), Section 2 (24-7-87).

5. Substituted, by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), Section 2 (24-7-87).

6. Substituted for the words " ten thousand "by the Khadi and Village Industries Commission(Amendment)Act, 2006(10 of 2006).

7. Substituted for the words " fifteen thousand rupees " by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

8. Inserted by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

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[Omitted by Khadi and Village Industries Commission (Amend ment) Act (12 of 1987), Section 3 (24-7-87).

Last updated on August, 2016

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