DIRECTORATE OF REGP

KHADI AND VILLAGE INDUSTRIES COMMISSION

Irla Road, Vileparle (West), Mumbai-400 056.

CIRCULAR

1. As per the approval received from the Ministry of Agro and Rural Industries; Government of India vide letter No. G-21013(6)/2001-KVI dated 16th January, 2002, the following amendments are made in implementation of REGP with immediate effect.

1. The investment ceiling to set up Village Industries by individuals/Firms/Trusts/Limited Companies under the REGP Scheme is enhanced from Rs. 10.00 lakhs to Rs. 25.00 lakhs.

2. Micro Finance Institutions/NGOs may be selected carefully for implementation under the ambit of REGP for financing. However, the Margin Money component should be released to them (MFIs/NGOs) only after disbursement of the loan.

2. However, the above amendment is not applicable for the projects already sanctioned (prior to 21-1-2002) by Banks/KVI Boards.

3. For the projects above Rs. 10.00 lakhs and upto Rs. 25.00  lakhs, rate of Margin Money will be 25% of Rs. 10.00 lakhs plus 10% of the remaining cost of the projects.

This will come into force with immediate effect.

Sd/-
Chief Executive Officer

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