Rural Employment Generation Programme (REGP)

On the basis of recommendation of the High Power Committee report, submitted in May 1994, headed by the then Prime Minster of India,

               The KVIC launched Rural Employment Generation Programme (REGP) with effect from 1st April, 1995 for generation of two million jobs under the KVI sector in the rural areas of the country. The term rural areas has been defined under the KVIC Act, 1956 as under.

                    MAIN OBJECTIVES

To generate employment in rural areas.
To develop entrepreneurial skill and attitude among rural unemployed youth.
To achieve the goal of rural industrialization.
To facilitate participation of financial institutions for higher credit flow to rural industries.

              

                      SALIENT FEATURES OF THE SCHEME

The scheme is applicable to all village industries project set up in rural areas.

The eligible agencies under the scheme are (i) individuals (rural artisans/entrepreneurs) ii) institutions cooperative societies, Trusts & SHGS for projects upto Rs. 25.00 lakhs.

Partnership Firms Private/Public Limited companies, Joint ventures, Jt. Borrowers, Co-obligators of HUF are not eligible under the Scheme.

Under this programme, capital subsidy in the form of margin money is provided at the rate of 25% of the project cost upto Rs. 10 lakhs and 10% on the balance project cost upto Rs. 25 lakhs.

                                IMPLEMENTATION

 

Presently KVIC is implementing REGP through :

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  All Public Sector Banks,
  
  
  
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  All regional Rural Banks,
  
  
  
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  Co-operative Banks approved by the State/U.T.,  KVIBs, Private Commercial Banks approved by the state KVIBs; and
  
  
  
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  Other Financing Institutions of State & Central Government as approved by KVIC.