The present global economic scenario which is turning the world into a global village is also bringing in its wake several opportunities for the rural population for developing their entrepreneurial talents, in proper prospective and add to the national gross domestic product.

The Khadi & V.I. Commission, as it has all along been the forerunner in bringing succor to the rural populace with all dignity and self respect, had launched many a programe on those lines, the latest and the most popular as on today being the Rural Employment Generation Programme.

The Rural Employment Generation Programme (REGP), which is being lauded as the most successful amongst rural development programmes in the country as on today has brought forth many useful innovations and necessities in the purposeful implementation of the programme. Rural Industries Consultancy Services (Rural ICS) is one off-shoot of such an endeavour.

Sustainability of any project depends upon fulfillment of certain basic requirements. Systematic approach, training to entrepreneurs, technology, Quality Control and marketing support form some of those foundations. Keeping in view that most of the rural entrepreneurs are finding it difficult to prepare viable village industries projects on their own, to obtain financial assistance from Banks, to maintain the quality of the product and market their goods in the present highly competitive market, the Commission has launched Rural Industries Consultancy Services (RICS) to provide support services to the first generation entrepreneurs.

Manned by suitable officers who are well-versed with the functioning and operationalisation of the Rural ICS Cells (these officials are thoroughly trained in premier institutes of repute from time to time to keep abreast of the latest requirements in the field), the cell is expected to function for the fulfillment of the following objectives.


OBJECTIVES
CONSULTANCY FEE
AGENCIES ELIGIBLE FOR CONSULTANCY
MONITORING
TARGET GROUPS
OPERATIONAL PROCEDURE
LIST OF RICS CELLS
RICS CIRCULARS

OBJECTIVES

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Providing guidance for technical and managerial support to the prospective entrepreneurs which includes -

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Preparation of projects
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Liaison work, with Banks, other agencies/ organizations/ local authorities in respect of the project.
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Necessary guidance and support to implement the Project.
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Necessary assistance in providing knowledge on procurement of raw materials, machineries, installation, etc.
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Quality control for acceptability & Reliability.
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Attractive Packaging and design for better marketing.
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Marketing support for sustainability of the unit.

CONSULTANCY FEE


Consultancy/Service charges to be levied for the services offered by RICS for preparation of Detailed Project Report (DPR) : -
(i)

RICS Cells are permitted to prepare projects costing upto Rs.25 lakhs.
(ii)

For project report costing upto Rs. 2 lakhs, no fees will be charged.
(iii)

For project report costing above Rs.2 lakhs and upto Rs. 5 lakhs, consultancy charges will be levied @ 1% of the Margin Money.
(iv)

For project report costing above Rs.5 lakhs and upto Rs. 10 lakhs, consultancy charges will be levied @ 1.5% of the Margin Money.
(v)

For project report costing above Rs. 10 lakhs and upto Rs.25.00 lakhs, a lump sum consultancy charges of Rs.5,000/- will be levied for every project.
(vi)

However, preparation of Project Report does consume paper, printing, stationery etc. Hence a nominal amount may be levied to bring certain value in providing the service and the cost of the stationery and printing will be charged from the proponent @ Rs.100/- per project in all cases, i.e. (ii), (iii) (iv) and (v) hereinabove.
(vii)

In case of Weaker Section Category i.e. SC, ST,OBC, Minority, Physically Handicapped, Women, Ex-servicemen and HBA for the purpose of calculating the consultancy charges, the margin money will be taken as 25% only and not 30% of the project cost. This is to ensure that the Weaker Section beneficiaries are not required to pay higher consultancy charges than the General category beneficiaries.

AGENCIES ELIGIBLE FOR CONSULTANCY

Rural I.C.S. cell in State and Divisional Offices, State/UT KVI Boards and Training Centres of KVIC and State/UT KVI Boards.

MONITORING

The concerned State/Divisional Director will monitor the functioning of RICS Cell.

Target Groups

The Rural ICS Cell established by KVIC will mainly focus, on the Project requirement upto Rs.5.00 lakhs with the following target groups:
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Educated and unemployed youth.
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Rural artisans
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Self Help Groups (SHGs)
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Rural youth already trained in the training institutes of KVIC/KVIB and other Government agencies.
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Weaker sections of the Society viz., SC/ST/OBC/Minority/PHC/Ex-Servicemen and women rural artisans/ entrepreneurs.

OPERATIONAL PROCEDURE
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A team of technical staff well trained in the premier institutes of the country with required knowledge and expertise have been posted to provide Consultancy.
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Team will guide the rural artisans and entrepreneurs to identify projects based on availability of raw material & other infrastructure in their chosen locality.
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Providing guidance for installation and Commissioning of machinery and other inputs to operationalise the unit successfully.
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Necessary guidance for quality control & marketing
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RICS will prepare the detailed project report (DPR) based on the information provided by the rural artisans/entrepreneurs and forward the same to State/Divisional Offices of KVIC/KVIB as the case may be.