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THE KHADI AND VILLAGE INDUSTRIES COMMISSION ACT, 1956

Title : THE KHADI AND VILLAGE INDUSTRIES COMMISSION ACT, 1956

Year : 1956



(1) Subject to the provisions of this Act, the functions of the Commission shall generally be to 2*[plan, promote, facilitate, organise] and assist in the establishment and development of khadi and village industries in the rural area in coordination with other agencies engaged in rural development wherever necessary.

(2) In particular, and without prejudice to the generality of the foregoing power, the Commission may take such other steps as it may think fit,-

(a) To 3*[plan and organise, directly or through specified agencies] training of persons employed or desirous of seeking employment in khadi and village industries;

(b) To 4*[build up, directly or through specified agencies] reserves of raw materials and implements and 5*[supply them or arrange supply of the raw materials and implements] to persons engaged or likely to be engaged in production of handspun yarn or khadi or village industries at such rates as the Commission may decide;

(c) To encourage and assist in the creation of common service facilities for the processing of raw materials or semi-finished goods and for otherwise facilitating 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 and for this purpose forge links with established marketing agencies wherever necessary and feasible;

(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 with a view to increasing productivity, eliminating drudgery and otherwise enhancing their competitive capacity and to arrange for dissemination of salient results obtained from such research;

(f) To undertake directly or through other agencies studies of the problems of khadi or village industries;

(g) To 6*[provide financial assistance, directly or through specified agencies,] to institutions or persons engaged in the development and operation of khadi or village industries and guide them through supply of designs, prototypes and other technical information for the purpose of producing goods and services for which there is effective demand in the opinion of the Commission;

(h) To 7*[undertake, directly or through specified agencies, experiments,] or pilot projects which in the opinion of the Commission are necessary for the development of khadi and village industries;

(i) To establish and maintain separate organisations for the purpose of carrying out any or all of the above matters;

(j) To promote and encourage co-operative efforts among the manufacturers of khadi or persons engaged in village industries;

(k) To ensure genuineness and to set up standards of quality and ensure that products of khadi and village industries do conform to the said standards, including issue of certificates or letters of recognition to the concerned persons; and

(l) To carry out any other matters incidental to the above.]

8*[Explanation.-For the purposes of clauses (a), (b), (g) and (h) of subsection (2), the expression "specified agencies" means the agencies which the Central Government may, by notification in the Official Gazette; specify in this behalf.]

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1. Substituted by Khadi and Village Industries Commission (Amdt.) Act (12 of 1987), Section 9 (24-7-87).

2. Substituted for the words "plan, promote, organise" by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

3. Substituted for the words "plan and organise" by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

4. Substituted for the words "build up" by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

5. Substituted for the words "supply them" by the Khadi and Village Industries Commission (Amendment) Act, 2006 (10 of 2006).

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

7. Substituted for the words "undertake experiments" 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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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.
Last updated on August, 2016

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