Special Employment Generation Programme

Targeting the traditional workers and weaker sections of society, Kerala Khadi and Village Industries Board proposes 10 Khadi and village industries units each in every grama panchayath per year during 11 th five year plan period. Minimum project cost will be Rs 10000/- and the maximum project cost will be limited to Rs 50000/-. 25 %, 30%,40%,50% of the project cost for general, O.B.C or Female, S.C and S.T respectively are proposed as margin money assistance from the State Government. Each unit is expected to give employment to two persons. Hence during 11 th five year plan total 500000 khadi and village industries units are proposed which will create one lakh new job opportunities. The Kerala Khadi and Village Industries Board can give Techinical assistance, training and marketing assistance. An outlay of Rs 100 lakhs is privided for the scheme in the Budget 2007-2008 under Flagship programme.

As the first step, it is proposed that the scheme will be implemented in the following 10 districts.

Kannur, Kasargodu, Kozhikkodu, Palakkad, Alappuzha, Malappuram, Kollam,Pathanamthitta, Wayanadu, Kottayam.

A sum of Rs 10 lakhs will be distributed to each district, targeting an average of 600 no of units and 1200 employment opportunities will be created during the year.2007-2008. 15% of the total funds will be reserved to scheduled castes and 7.5% will be reserved to scheduled tribes.



Any individuals and institutions expect partnership and private institutions.


II.Selection Committee.


President, District Panchayat


Project Officer, Khadi Board


Board Member, Khadi Board


Manager, Lead Bank 


General Manager, District Industrial Centre/Representative        


District Planning Officer/Representative    


III. Pattern of margin money assistance.


General categories


O.B.C and Women


Scheduled Castes


Scheduled Tribes


IV. Promoters Contribution.

 The entrepreneur should be investing 10 % of the project cost as own contribution. But in the case of scheduled castes and scheduled tribes, it is limited to 5%.


V. Loan from Where

 90 % of the project cost may be obtained as loan from any authorised Banks/Co-operative Banks/any other authorised financial institutions.


VI. Recognized Village Industries.

 All the industries except the negative list approved by Khadi Commission.

For more details contact concerned project offices