The Khadi and Village Industries Commission Act, 1956
Administered Ministry: Ministry of Micro, Small and Medium Enterprises
Section
Section 1 Short title and extent. 32 docs
(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*.
(2) It extends to the whole of India except the State of Jammu and Kashmir*.
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh.
Section 2 Definitions.
n this Act, unless the context otherwise requires,--
(a) "the Board" means the Board constituted under 1 [section 10];
(b) "chairman" means the chairman of the Commission;
(c) "Commission" means the Khadi and Village Industries Commission established under section 4;
2 [(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 Commission 3 [and includes the chairman 4 ***];
(f) "prescribed" means prescribed by rules made under this Act;
5 [(ff) "rural area" means the area comprised in any village, and includes the area comprised in any town, the population of which does not exceed 6 [twenty thousand] or such other figure as the Central Government may specify from time to time;]
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9 [(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 exceed 10[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 (12 of 1987), shall, notwithstanding anything contained in this sub-clause, continue to be a village industry under this Act:
11 [Provided further that in the case of any industry located in a hilly area, the provisions of this this sub-clause shall have effect as if for the words "one lakh rupees", the words "one lakh and fifty thousand rupees" steal.]
(ii) any other non-manufacturing unit established for the sole purpose of promoting, maintaining, assisting, servicing (including mother units) or managing any village industry;]
(a) "the Board" means the Board constituted under 1 [section 10];
(b) "chairman" means the chairman of the Commission;
(c) "Commission" means the Khadi and Village Industries Commission established under section 4;
2 [(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 Commission 3 [and includes the chairman 4 ***];
(f) "prescribed" means prescribed by rules made under this Act;
5 [(ff) "rural area" means the area comprised in any village, and includes the area comprised in any town, the population of which does not exceed 6 [twenty thousand] or such other figure as the Central Government may specify from time to time;]
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9 [(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 exceed 10[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 (12 of 1987), shall, notwithstanding anything contained in this sub-clause, continue to be a village industry under this Act:
11 [Provided further that in the case of any industry located in a hilly area, the provisions of this this sub-clause shall have effect as if for the words "one lakh rupees", the words "one lakh and fifty thousand rupees" steal.]
(ii) any other non-manufacturing unit established for the sole purpose of promoting, maintaining, assisting, servicing (including mother units) or managing any village industry;]
1. Subs. by Act 36 of 1957, s. 3 and the Second Schedule, for "section 9" (w.e.f. 17-9-1957).
2. Ins. by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
3. Subs. by Act 32 of 1961, s. 2, for "and includes the chairman" (w.e.f. 28-8-1961).
4. The words "and the vice-chairman" omitted by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
5. Ins. by s. 2, ibid. (w.e.f. 24-7-1987).
6. Subs. by Act 10 of 2006, s. 2, for "ten thousand" (w.e.f. 15-5-2006).
7. Omitted by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
8. Omitted by s. 2, ibid. (w.e.f. 24-7-1987).
9. Subs. by s. 2, ibid., for clause (h) (w.e.f. 24-7-1987).
10. Subs. by Act 10 of 2006, s. 2, for "fifteen thousand rupees" (w.e.f. 15-5-2006).
11. The proviso ins. by Act 10 of 2006, s. 2 (w.e.f. 15-5-2006).
2. Ins. by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
3. Subs. by Act 32 of 1961, s. 2, for "and includes the chairman" (w.e.f. 28-8-1961).
4. The words "and the vice-chairman" omitted by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
5. Ins. by s. 2, ibid. (w.e.f. 24-7-1987).
6. Subs. by Act 10 of 2006, s. 2, for "ten thousand" (w.e.f. 15-5-2006).
7. Omitted by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
8. Omitted by s. 2, ibid. (w.e.f. 24-7-1987).
9. Subs. by s. 2, ibid., for clause (h) (w.e.f. 24-7-1987).
10. Subs. by Act 10 of 2006, s. 2, for "fifteen thousand rupees" (w.e.f. 15-5-2006).
11. The proviso ins. by Act 10 of 2006, s. 2 (w.e.f. 15-5-2006).
Section 3 Power to add to the Schedule.
[Power to add to the Schedule.] Omitted by Khadi and Village Industries Commission (Amendment) Act 1987 (12 of 1987), s. 3 (w.e.f. 24-7-1987).
Section 4 Establishment and constitution of the Commission. 5 docs
(1) With effect from such date as the Central Government may, by notification in the Official Gazette, fix in this behalf, there shall be established a Commission to be called the Khadi and Village Industries Commission which shall be a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property and to contract, and may by the said name sue and be sued.
1 [(1A) Save as otherwise provided under this Act and the rules made thereunder, the exercise of all powers and discharge of all functions under this Act, including general superintendence, direction and management of day-to-day affairs of the Commission, shall vest in the Commission.]
2 [(2) The Commission shall consist of the following members appointed by the Central Government, namely:--
(a) six non-official members 3 [having specialised knowledge and not less than ten years of experience of khadi or village industries] and representing such six geographical zones of the country, as may be prescribed;
4 [(b) four non-official members of whom each member shall be from the following disciplines, namely:--
(i) one member having expert knowledge and experience in Science and Technology;
(ii) one member having expert knowledge and experience in Marketing;
(iii) one member having expert knowledge and experience in Rural Development; and
(iv) one member having expert knowledge and experience in Technical Education and Training.]
5 [(ba) the Chairman of the State Bank of India constituted under sub-section (1) of section 3 of the State Bank of India Act, 1955 (23 of 1955) or an officer not below the rank of the Deputy Managing Director as may be nominated by the Chairman of the State Bank of India--ex officio;];
6 [(c) a Chief Executive Officer, ex officio; and
(d) a Financial Adviser, who shall also be the Chief Accounts Officer of the Commission, ex officio.]
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(3) The Central Government may appoint one of the members appointed under clause (a) of sub-section (2) to be the chairman who shall be a full-time member.]
1 [(1A) Save as otherwise provided under this Act and the rules made thereunder, the exercise of all powers and discharge of all functions under this Act, including general superintendence, direction and management of day-to-day affairs of the Commission, shall vest in the Commission.]
2 [(2) The Commission shall consist of the following members appointed by the Central Government, namely:--
(a) six non-official members 3 [having specialised knowledge and not less than ten years of experience of khadi or village industries] and representing such six geographical zones of the country, as may be prescribed;
4 [(b) four non-official members of whom each member shall be from the following disciplines, namely:--
(i) one member having expert knowledge and experience in Science and Technology;
(ii) one member having expert knowledge and experience in Marketing;
(iii) one member having expert knowledge and experience in Rural Development; and
(iv) one member having expert knowledge and experience in Technical Education and Training.]
5 [(ba) the Chairman of the State Bank of India constituted under sub-section (1) of section 3 of the State Bank of India Act, 1955 (23 of 1955) or an officer not below the rank of the Deputy Managing Director as may be nominated by the Chairman of the State Bank of India--ex officio;];
6 [(c) a Chief Executive Officer, ex officio; and
(d) a Financial Adviser, who shall also be the Chief Accounts Officer of the Commission, ex officio.]
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(3) The Central Government may appoint one of the members appointed under clause (a) of sub-section (2) to be the chairman who shall be a full-time member.]
1. Ins. by s. 3, ibid. (w.e.f. 15-5-2006).
2. Subs. by Act 12 of 1987, s. 4, for sub-sections (2) and (3) (w.e.f. 24-7-1987).
3. Subs. by Act 10 of 2006, s. 3, for "having specialised knowledge and experience of khadi and village industries" (w.e.f. 15-5-2006).
4. Subs. by s. 3, ibid., for clause (b) (w.e.f. 15-5-2006).
5. Ins. by s. 3, ibid. (w.e.f. 15-5-2006).
6. Subs. by s. 3, ibid., for clauses (c) and (d) (w.e.f. 15-5-2006).
7. The proviso omitted by Act 10 of 2006, s. 3 (w.e.f. 15-5-2006).
2. Subs. by Act 12 of 1987, s. 4, for sub-sections (2) and (3) (w.e.f. 24-7-1987).
3. Subs. by Act 10 of 2006, s. 3, for "having specialised knowledge and experience of khadi and village industries" (w.e.f. 15-5-2006).
4. Subs. by s. 3, ibid., for clause (b) (w.e.f. 15-5-2006).
5. Ins. by s. 3, ibid. (w.e.f. 15-5-2006).
6. Subs. by s. 3, ibid., for clauses (c) and (d) (w.e.f. 15-5-2006).
7. The proviso omitted by Act 10 of 2006, s. 3 (w.e.f. 15-5-2006).
Section 5 Powers and functions of the Chief Executive Officer.
1[5. Powers and functions of the Chief Executive Officer.--2[(1) Subject to the provisions contained in sub-section (1A) of section 4, the Chief Executive Officer, appointed under clause (c) of sub-section (2) of section 4, shall exercise such powers and discharge such functions in respect of general superintendence over the affairs of the Commission and its day-to-day management, as may be prescribed.
(1A) Without prejudice to the powers and functions referred to in sub-section (1), the Chief Executive Officer shall exercise such powers and discharge such functions under the general superintendence, direction and management of the Commission.]
(2) The Chief Executive Officer 3[shall, in addition to exercise of the powers and discharge of the functions referred to in sub-section (1), be responsible] for the furnishing of all returns, reports and statements required to be furnished to the Central Government under section 24.
(3) It shall be the duty of the Chief Executive Officer to place before the Commission for its consideration and decision any matter of financial import if the Financial Adviser suggests to him in writing that such matter be placed before the Commission.]
(1A) Without prejudice to the powers and functions referred to in sub-section (1), the Chief Executive Officer shall exercise such powers and discharge such functions under the general superintendence, direction and management of the Commission.]
(2) The Chief Executive Officer 3[shall, in addition to exercise of the powers and discharge of the functions referred to in sub-section (1), be responsible] for the furnishing of all returns, reports and statements required to be furnished to the Central Government under section 24.
(3) It shall be the duty of the Chief Executive Officer to place before the Commission for its consideration and decision any matter of financial import if the Financial Adviser suggests to him in writing that such matter be placed before the Commission.]
1. Subs. by Act 12 of 1987, s. 5, for sections 5 and 6 (w.e.f. 24-7-1987).
2. Subs. by Act 10 of 2006, s. 4, for sub-section (1) (w.e.f. 15-5-2006).
3. Subs. by s. 4, ibid., for "shall be responsible" (w.e.f. 15-5-2006).
2. Subs. by Act 10 of 2006, s. 4, for sub-section (1) (w.e.f. 15-5-2006).
3. Subs. by s. 4, ibid., for "shall be responsible" (w.e.f. 15-5-2006).
Section 5A Powers and functions of the Financial Adviser.
1[5A. Powers and functions of the Financial Adviser.--The Financial Adviser 2[appointed under clause (d) of sub-section (2) of section 4 shall be in charge of such financial matters of the Commission including its budget, accounts and audit, as may be prescribed] and it shall be the duty of the Financial Adviser to bring to the notice of the Commission through the Chief Executive Officer any matter of financial import, which, in his opinion, requires consideration and decision by the Commission.]
1. Ins. by s. 5, ibid. (w.e.f. 15-5-2006).
2. Subs. by s. 5, ibid., for certain words (w.e.f. 15-5-2006).
2. Subs. by s. 5, ibid., for certain words (w.e.f. 15-5-2006).
Section 6 Disqualifications for membership of the Commission.
A person shall be disqualified for being appointed as, and for being, a member of the Commission--
(a) if he is, or is found to be a lunatic or a person of unsound mind; or
(b) if he has been adjudged insolvent; or
(c) if he has been convicted of an offence involving moral turpitude; or
(d) if he has any financial interest in any subsisting contract made with or in any work being done by the Commission, except as a shareholder (other than a Director), in a company as defined in section 3 of the Companies Act, 1956 (1 of 1956):
Provided that where he is a shareholder, he shall disclose to the Central Government, the nature and extent of shares held by him in such a company; or
(e) if he has any financial interest in any business undertaking dealing with or any other village industry specified or deemed to be specified in the Schedule to the Act.
(a) if he is, or is found to be a lunatic or a person of unsound mind; or
(b) if he has been adjudged insolvent; or
(c) if he has been convicted of an offence involving moral turpitude; or
(d) if he has any financial interest in any subsisting contract made with or in any work being done by the Commission, except as a shareholder (other than a Director), in a company as defined in section 3 of the Companies Act, 1956 (1 of 1956):
Provided that where he is a shareholder, he shall disclose to the Central Government, the nature and extent of shares held by him in such a company; or
(e) if he has any financial interest in any business undertaking dealing with or any other village industry specified or deemed to be specified in the Schedule to the Act.
Section 6A Removal of Chairman, Member, etc., from the Commission.
1[6A. Removal of Chairman, Member, etc., from the Commission.-- The Central Government may, by notification in the Official Gazette, remove from office any member of the Commission who--
(a) is or becomes subject to any of the disqualifications mentioned in section 6; or
(b) in the opinion of the Central Government has failed or is unable to carry out his duties; or
(c) absents himself from three consecutive meetings of the Commission without the leave of the Commission:
Provided that before issuing any such notification, the Central Government shall give an opportunity to the member concerned to show cause against such removal.]
(a) is or becomes subject to any of the disqualifications mentioned in section 6; or
(b) in the opinion of the Central Government has failed or is unable to carry out his duties; or
(c) absents himself from three consecutive meetings of the Commission without the leave of the Commission:
Provided that before issuing any such notification, the Central Government shall give an opportunity to the member concerned to show cause against such removal.]
1. Ins. by Act 12 of 1987, s. 6 (w.e.f. 24-7-1987).
Section 7 Resignation of office by member.
Any member may resign his office by giving notice in writing to the Central Government and, on such resignation being notified in the Official Gazette by that Government, shall be deemed to have vacated his office
Section 8 Vacancies, etc., not to invalidate acts and proceedings of the Commission.
No act or proceeding of the Commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.
Section 9 Temporary association of persons with the Commission for particular purposes. 3 docs
(1) The Commission may associate with itself in such manner and for such purposes as may be determined by regulations made under this Act any persons whose assistance or advice it may desire in complying with any of the provisions of this Act.
(2) A person associated with it by the Commission under sub-section (1) for any purpose shall have the right to take part in the discussions of the Commission relevant to that purpose, but shall not have the right to vote, and shall not be a member for any other purpose.
(3) The Central Government may, by notification in the Official Gazette, depute one or more officers of the Government to attend any meetings of the Commission and to take part in the discussions of the Commission, but such officer or officers shall not have the right to vote.
(2) A person associated with it by the Commission under sub-section (1) for any purpose shall have the right to take part in the discussions of the Commission relevant to that purpose, but shall not have the right to vote, and shall not be a member for any other purpose.
(3) The Central Government may, by notification in the Official Gazette, depute one or more officers of the Government to attend any meetings of the Commission and to take part in the discussions of the Commission, but such officer or officers shall not have the right to vote.
Section 10 Constitution of the Board. 7 docs
1[(1)] For the purpose of assisting the Commission in the discharge of its functions under this Act, the Central Government may, by notification in the Official Gazette, constitute a Board to be called the Khadi and Village Industries Board and such number of other members as the Central Government may think fit, chosen from among persons who, in the opinion of the Central Government, are qualified as having had experience, and shown capacity, in matters relating to the development of 2[National Khadi and Village Industries Board.]
3[(2) The Board shall, subject to the provisions of sub-section (3), meet at such times and places and observe such rules of procedure in regard to the transaction of business at its meetings including the quorum at meetings as may be prescribed;
(3) The Board shall meet at least twice in a year.].
3[(2) The Board shall, subject to the provisions of sub-section (3), meet at such times and places and observe such rules of procedure in regard to the transaction of business at its meetings including the quorum at meetings as may be prescribed;
(3) The Board shall meet at least twice in a year.].
1. Section 10 renumbered as sub-section (1) thereof, by Act 10 of 2006, s. 6 (w.e.f. 1-10-1984).
2. Subs. by s. 6, ibid., for "Khadi and Village Industries Board" (w.e.f. 15-5-2006).
3. Ins. by s. 6, ibid. (w.e.f. 15-5-2006).
2. Subs. by s. 6, ibid., for "Khadi and Village Industries Board" (w.e.f. 15-5-2006).
3. Ins. by s. 6, ibid. (w.e.f. 15-5-2006).
Section 11 Commission to consult the Board.
The Commission shall ordinarily consult the Board with respect to the discharge of its functions under this Act.
Section 12 Meetings of the Commission.
(1) The Commission shall meet at such times and places and shall, subject to the provisions of sub-sections (2) and (3), observe such rules of procedure in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Commission under this Act:
Provided that the Commission shall meet at least once in every month.
1[(2) The chairman or, in his absence, any member (other than an ex officio member) chosen by the members present from among themselves, shall preside at a meeting of the Commission.]
(3) All questions at a meeting of the Commission shall be decided by a majority of the 2[votes of the members (including ex officio members) present] and voting and in the case of an equality of votes, the chairman or, in his absence the person presiding shall have a second or casting vote.
Provided that the Commission shall meet at least once in every month.
1[(2) The chairman or, in his absence, any member (other than an ex officio member) chosen by the members present from among themselves, shall preside at a meeting of the Commission.]
(3) All questions at a meeting of the Commission shall be decided by a majority of the 2[votes of the members (including ex officio members) present] and voting and in the case of an equality of votes, the chairman or, in his absence the person presiding shall have a second or casting vote.
1. Subs. by Act 12 of 1987, s. 6, for sub-section 2 (w.e.f. 24-7-1987).
2. Subs. by Act 10 of 2006, s. 7, for "votes of the members present" (w.e.f. 15-5-2006).
2. Subs. by Act 10 of 2006, s. 7, for "votes of the members present" (w.e.f. 15-5-2006).
Section 12A Zonal Committee.
1[12A. Zonal Committee.-- (1) The Commission shall constitute for each of the six geographical zones, referred to in clause (a) of sub-section (2) of section 4, a Zonal Committee, which shall consist of the following, namely:--
(a) the non-official member representing the zone, referred to in clause (a) of sub-section (2) of section 4, who shall be the Chairman of the Zonal Committee constituted for respective zones;
(b) one representative of each of the State Khadi and Village Industries Boards of the States or, as case may be, the Government of each State in the zone, to be notified by the Central Government in consultation with the State Government concerned--member;
(c) the Zonal Deputy Chief Executive Officer of the Commission, who shall be the convener of the Zonal Committee--member;
(d) the State Directors in charge of the Commissions Directorates for the States in the zone--member;
(e) a Zonal or Regional manager of one of the lead banks operating in the zone-member; and
(f) one representative of an institution of repute, working for at least ten years in the khadi or village industries sector and having a good record of performance, from each State in the zone, to be notified by the Central Government--member.
(2) The Zonal Committee shall meet at such times and places and shall, subject to the provisions of sub-section (3), observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at the meetings) as may be provided by regulations made by the Commission under this Act:
Provided that the Committee shall meet at least once in every three months.
(3) The Chairman of the Zonal Committee or, in his absence, any member chosen by the members present from among themselves, shall preside at a meeting of the Committee.
(4) The Zonal Committee shall generally function as a forum for consultation and, accordingly, inter alia,--
(a) act as a conduit for the dissemination of information relating to the programmes and schemes of the Commission for the development of khadi and village industries in the zone;
(b) monitor, from time to time, the implementation of the programmes and schemes referred to in clause (a);
(c) provide feedback to the Commission on the problems and difficulties envisaged and suggestions made by banks, voluntary agencies, artisans and others engaged in the operation of programmes and schemes referred to in clause (a).]
(a) the non-official member representing the zone, referred to in clause (a) of sub-section (2) of section 4, who shall be the Chairman of the Zonal Committee constituted for respective zones;
(b) one representative of each of the State Khadi and Village Industries Boards of the States or, as case may be, the Government of each State in the zone, to be notified by the Central Government in consultation with the State Government concerned--member;
(c) the Zonal Deputy Chief Executive Officer of the Commission, who shall be the convener of the Zonal Committee--member;
(d) the State Directors in charge of the Commissions Directorates for the States in the zone--member;
(e) a Zonal or Regional manager of one of the lead banks operating in the zone-member; and
(f) one representative of an institution of repute, working for at least ten years in the khadi or village industries sector and having a good record of performance, from each State in the zone, to be notified by the Central Government--member.
(2) The Zonal Committee shall meet at such times and places and shall, subject to the provisions of sub-section (3), observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at the meetings) as may be provided by regulations made by the Commission under this Act:
Provided that the Committee shall meet at least once in every three months.
(3) The Chairman of the Zonal Committee or, in his absence, any member chosen by the members present from among themselves, shall preside at a meeting of the Committee.
(4) The Zonal Committee shall generally function as a forum for consultation and, accordingly, inter alia,--
(a) act as a conduit for the dissemination of information relating to the programmes and schemes of the Commission for the development of khadi and village industries in the zone;
(b) monitor, from time to time, the implementation of the programmes and schemes referred to in clause (a);
(c) provide feedback to the Commission on the problems and difficulties envisaged and suggestions made by banks, voluntary agencies, artisans and others engaged in the operation of programmes and schemes referred to in clause (a).]
1. Ins. by s. 8, ibid. (w.e.f. 15-5-2006).
Section 13 Term of office and conditions of service of the chairman and other members.
1[13. Term of office and conditions of service of the chairman and other members.--(1) Every member of the Commission, other than an ex officio member, shall hold office 2 [at the pleasure of the Central Government which shall not exceed continuous period of five years]:
Provided that the chairman shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
(2) The terms and conditions of service of the chairman, Chief Executive Officer, Financial Adviser and other members shall be such as may be prescribed.]
Provided that the chairman shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
(2) The terms and conditions of service of the chairman, Chief Executive Officer, Financial Adviser and other members shall be such as may be prescribed.]
1. Subs. by Act 12 of 1987, s. 7, for section 13 (w.e.f. 24-7-1987).
2. Subs. by Act 10 of 2006, s. 9, for "for a term of five years" (w.e.f. 15-5-2006).
2. Subs. by Act 10 of 2006, s. 9, for "for a term of five years" (w.e.f. 15-5-2006).
Section 14 Officers and servants of the Commission. 1 docs
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2*** Subject to such rules as may be made by the Central Government in this behalf, the Commission Commission may appoint such other officers and servants as it considers necessary for the efficient performance of its functions:
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2*** Subject to such rules as may be made by the Central Government in this behalf, the Commission Commission may appoint such other officers and servants as it considers necessary for the efficient performance of its functions:
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1. Sub-section (1), omitted by Act 12 of 1987, s. 8 (w.e.f. 24-7-1987).
2. The proviso and brackets and figure "(2)" omitted by s. 8, ibid. (w.e.f. 24-7-1987).
2. The proviso and brackets and figure "(2)" omitted by s. 8, ibid. (w.e.f. 24-7-1987).
Section 15 Functions of the Commission. 2 docs
1[15. Functions of the Commission.--(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 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 sub-section (2), the expression "specified agencies" means the agencies which the Central Government may, by notification in the Official Gazette, specify in this behalf.]
(2) In particular, and without prejudice to the generality of the foregoing power, the Commission may take such 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 sub-section (2), the expression "specified agencies" means the agencies which the Central Government may, by notification in the Official Gazette, specify in this behalf.]
1 Subs. by Act 12 of 1987, s. 9, for section 15 (w.e.f. 24-7-1987).
2 Subs. by Act 10 of 2006, s. 10, for "plan, promote, organise" (w.e.f. 15-5-2006).
3 Subs. by s. 10, ibid., for "plan and organise" (w.e.f. 15-5-2006).
4 Subs. by s. 10, ibid., for "build up" (w.e.f. 15-5-2006).
5 Subs. by s. 10, ibid., for "supply them" (w.e.f. 15-5-2006).
6 Subs. by s. 10, ibid., for "provide financial assistance" (w.e.f. 15-5-2006).
7 Subs. by s. 10, ibid., for "undertake experiments" (w.e.f. 15-5-2006).
8 The Explanation ins. by Act 10 of 2006, s. 10 (w.e.f. 15-5-2006).
2 Subs. by Act 10 of 2006, s. 10, for "plan, promote, organise" (w.e.f. 15-5-2006).
3 Subs. by s. 10, ibid., for "plan and organise" (w.e.f. 15-5-2006).
4 Subs. by s. 10, ibid., for "build up" (w.e.f. 15-5-2006).
5 Subs. by s. 10, ibid., for "supply them" (w.e.f. 15-5-2006).
6 Subs. by s. 10, ibid., for "provide financial assistance" (w.e.f. 15-5-2006).
7 Subs. by s. 10, ibid., for "undertake experiments" (w.e.f. 15-5-2006).
8 The Explanation ins. by Act 10 of 2006, s. 10 (w.e.f. 15-5-2006).
Section 16 Power of Central Government to give directions.
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.
Section 17 Payment to the Commission.
The Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Commission in each financial year such sums as may be considered necessary for the performance of the functions of the Commission under this Act.