2[Repealed by Act 2 of 2018, S. 2 and Sch. I]
Be it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:
Prefatory Note Statement of Objects and Reasons. The Khadi and Village Industries Commission (KVIC) is a statutory body established under the Khadi and Village Industries Commission Act, 1956 (61 of 1956) to provide for the establishment of a Commission for the development of khadi and village industries and for matters connected therewith.
2. It has, however, been found that due to certain difficulties, there has been steep decline in employment in the khadi sector and sales of khadi products since 1997-98 have been more or less stagnant.
3. Consequent upon certain administrative and financial difficulties in the working of the Khadi and Village Industries Commission and decline in the sales and employment in the khadi sector, the Central Government dissolved the Khadi and Village Industries Commission and constituted an Expert Committee to examine the structure, functioning and performance of the Khadi and Village Industries Commission and recommend measures to revamp the Khadi and Village Industries Commission and launch new programmes. The Expert Committee submitted its report on the 6th April, 2005.
4. The Central Government proposes to amend the Khadi and Village Industries Commission Act, 1956 incorporating therein the accepted recommendations of the Export Committee and, inter alia, seeks to
(a) include two more part-time members in the Khadi and Village Industries Commission;
(b) confer voting rights upon the ex officio members of the Commission;
(c) provide requirement of ten years of experience in appropriate fields for appointment as a member of the Commission and also widen the field of expertise for appointment as a member of the Commission;
(d) make specific provisions for clear demarcation of functions and powers among the Commission, the Chief Executive Officer and the Financial Adviser of the Commission;
(e) provide for constitution of Zonal Committees, its functions and meetings;
(f) make specific provisions for undertaking certain functions by the Commission through specified agencies;
(g) clarify that the Chairman and Members of the Commission shall hold office at the pleasure of the Central Government which shall not exceed continuous period of five years as such in the Commission;
(h) confer power upon the Central Government to re-establish the Commission after its dissolution; and
(i) make other provisions which are clarificatory or consequential in nature.
5. The Bill seeks to achieve the above objects.
(1) This Act may be called the Khadi and Village Industries Commission (Amendment) Act, 2006.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, specify in this behalf.
In Section 2 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956) (hereinafter referred to as the principal Act),
(i) in clause (ff), for the words ten thousand , the words twenty thousand shall be substituted;
(ii) in clause (h), in sub-clause (i),
(A) for the words fifteen thousand rupees , the words one lakh rupees shall be substituted;
(B) after the proviso, the following proviso shall be inserted, namely:
In Section 4 of the principal Act,
(a) after sub-section (1), the following sub-section shall be inserted, namely:
(1-A) 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. ;
(b) in sub-section (2),
(i) in clause (a), for the words having specialised knowledge and experience of khadi and village industries , the words having specialised knowledge and not less than ten years of experience of khadi or village industries shall be substituted;
(ii) for clause (b), the following clause shall be substituted, 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;
(iii) after clause (b) the following clause shall be inserted, namely:
(iv) for clauses (c) and (d), the following clauses shall be substituted, namely:
(v) after clause (d), the proviso shall be omitted.
In Section 5 of the principal Act,
(a) for sub-section (1), the following sub-sections shall be substituted, namely:
(1) Subject to the provisions contained in sub-section (1-A) 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.
(1-A) 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. .
(b) in sub-section (2), for the words shall be responsible , the words shall, in addition to exercise of the powers and discharge of the functions referred to in sub-section (1), be responsible shall be substituted.
In Section 5-A of the principal Act, for the words, brackets, letter and figures appointed under clause (c) of sub-section (2) of Section 4 shall be in charge of all financial matters of the Commission including its budget, accounts and audit , the words, brackets, letter and figures 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 shall be substituted.
Section 10 of the principal Act, shall be numbered as sub-section (1) thereof and,
(a) in sub-section (1) as so numbered, for the words Khadi and Village Industries Board , the words National Khadi and Village Industries Board shall be substituted;
(b) after sub-section (1) as so numbered, the following sub-sections shall be inserted, namely:
(2) The Board shall, subject to the provision 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. .
In Section 12 of the principal Act, in sub-section (3), for the words votes of the members present , the words and brackets votes of the members (including ex officio members) present shall be substituted.
After Section 12 of the principal Act, the following section shall be inserted, 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 the 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 Commission's 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.
(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). .
In Section 13 of the principal Act, in sub-section (1), for the words for a term of five years , the words at the pleasure of the Central Government which shall not exceed continuous period of five years shall be substituted.
In Section 15 of the principal Act,
(a) in sub-section (1), for the words plan, promote, organise , the words plan, promote, facilitate, organise shall be substituted;
(b) in sub-section (2),
(i) in clause (a), for the words plan and organise , the words plan and organise, directly or through specified agencies shall be substituted;
(ii) in clause (b),
(A) for the words build up , the words build up, directly or through specified agencies, shall be substituted;
(B) for the words supply them , the words supply them or arrange supply of the raw materials and implements shall be substituted;
(iii) in clause (g), for the words provide financial assistance , the words provide financial assistance, directly or through specified agencies, shall be substituted;
(iv) in clause (h), for the words undertaken experiments , the words undertake, directly or through specified agencies, experiments, shall be substituted;
(c) after sub-section (2), the following Explanation shall be inserted at the end, namely:
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. .
In Section 19-A of the principal Act, in sub-section (1), the following proviso shall be inserted, namely:
In Section 25 of the principal Act, after sub-section (2), the following sub-section shall be inserted at the end, namely:
In Section 26 of the principal Act, in sub-section (2), after clause (a), the following clauses shall be inserted, namely:
In Section 27 of the principal Act, in sub-section (2),
(i) after clause (b), the following clause shall be inserted, namely:
(ba) the transaction of business at the meetings of the Zonal Committee under sub-section (2) of Section 12-A; ;
(ii) in clause (c), the words the Chief Executive Officer or shall be omitted.
1. Received the assent of the President on 22-3-2006 and published in the Gazette of India, Extra., Part II, Section 1.
2. Repealed by Act 2 of 2018, S. 2 and Sch. I, dated 8-1-2018.