Page 35 - MSME April-May 2017
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News (Rs. 2000 crore) for rural industries to be KVIC act, 1956 in line with change from an administered by NABARD or a separate operational body to policy formulation body. financial institution. ● At the Commission level, the KVIC to not only Focus on select industries for development ● comprise representatives of the KVI sector but where KVIC has expertise and experience the officers of the KVIC to also participate in its policy making and, therefore, the CEO, FA ● Development of the export capability of KVI and the heads of Khadi and VI departments Institutions; strengthening quality control, to be appointed as voting members of the augmenting training (participatory funding Commission. scheme for KVIB and NGO run new training centres) and research facilities ● At the operational level, KVIC to structure itself into separate business units to meet the ● Creation of a special cell at the KVIC distinct requirements of Khadi and Village headquarters to oversee and monitor the KVI programmes Industries. ● The roles and responsibilities of internal ● Transition to Project Approach for financing (from Pattern Approach) functions, such as Capacity Building, Marketing & Sales, Research & Development, ● Commission to delegate day to day functions Human Resources, Finance, etc, which are to the CEO and Financial Advisor and focus on integral to the organization’s performance, to developmental rather than regulatory activity be defined and communicated clearly. ● Measures for strengthening of KVIBs ● KVIC should set up industrial clusters catering to a groups of skilled artisans at the district/ Based on the recommendations of the High Power block level committee the following changes were brought in the KVI Sector: Based on the recommendations of the Arthur Andersen study the CEO and FA were made ex- The REGP scheme was commissioned in officio members of the Commission and voting 1995-96 with the objective of providing a formal rights were also conferred. channel for flow of funds from banking institutions to the KVI sector. Ministry constituted Expert Committee under the Chairmanship of Mr. D.M. Sukthankar, former The Government of India framed a new scheme for KVIC to take online credit facility (Consortium Chief Secretary Govt. of Maharashtra, in 2005 to review the existing structure, functioning and of Bank Credit or “CBC”) of Rs. 1000 crore. performance of KVIC to study the regulatory Arthur Andersen study was commissioned in framework and to recommend any other measures the year 2000 with the objective of reorganizing considered necessary to revamp the KVIC. the KVIC organization structure with respect to the The committee in its report submitted in March, changing business needs and overall objectives of the KVIC. 2005 made various recommendations. The key recommendations of the committee were: The committee in its report made various ● Need for identification of select traditional recommendations. The key recommendations of the committee were: and sunrise industries as focus areas; a cluster- based approach to revival of traditional ● Redefinition of “Commission” under the industries; April-May, 2017 33
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