Wednesday, December 19, 2007


MEMORANDUM OF UNDERSTANDING made at New Delhi, this Twenty Eighth day of September, 2005 between the Khadi and Village Industries Commission, an organization functioning under the control of the Ministry of Agro

and Rural Industries, Govt. of India, having its Central Office at 3, Irla Road, Vile Parle (W), Mumbai 400 056 hereinafter called “KVIC” (which expression shall, unless repugnant to the context or meaning thereof be deemed to mean and include its successors and assigns) of the One Part AND Department of Women and Child Development, a department functioning under the control of the Ministry of Human Resource Development, Govt of India, having its office at Shastri Bhawan, New Delhi hereinafter call “DWCD” (which expression shall, unless repugnant to the context or meaning thereof be deemed to mean and include its successors and assigns) of the Other Part.

WHEREAS KVIC has been constituted to devote itself to the development and propagation of khadi and village industries in the country. The main object of the KVIC is to create employment opportunities in rural areas and to support rural development in its widest sense for improving the quality of life. With a view to accelerate employment generation programme, KVIC has launched Rural Employment Generation Programme (REGP) and providing large number of employment to the rural mass. KVIC as one of its functions also promote the sale and marketing of khadi or products of village industries or handicrafts and for this purpose forge links with marketing or other agencies wherever necessary and feasible.

WHEREAS the KVIC being an Apex Rural Development Agency promoting rural employment through its REGP programme is having marketing infrastructure facility through its 7050 sales outlets, schemes like exhibitions, PRODIP, Training Programme, Common Facility Centre including Quality Control Laboratories, packaging unit etc.

WHEREAS the DWCD is Department of the Government of India under the Ministry of Human Resource Development, Planning and implementing programmes for holistic development and welfare of women and children. As part of its activities to further its main objectives, the DWCD is promoting various programmes like Swashakti and Swaymsiddha for holistic development of women through formation of self help groups (SHGs) to carry out economic activities with the view to empower women.

And where as the KVIC and the DWCD have agreed to initiate steps to explore the feasibility of jointly initiating micro-enterprise activities for SHGs, including marketing of its produce through various outlets of KVIC;

And whereas it has been decided to explore the possibilities of developing a joint marketing strategy by utilizing the services of field offices of both KVIC and DWCD for effective implementation of the tie up.

And whereas it is mutually agreed between the parties hereto to work together towards generation of rural employment for women in rural areas and to market the products produced under various schemes of DWCD such as Swashakti and Swayamsiddha along with produce of REGP scheme with the object of promoting holistic development of women with particular emphasis of giving economic empowerment by priority micro enterprises by SHG, clusters and federations.

Now this indenture witnessed and it is hereby mutually agreed and between parties hereto as follows.

I. Role and responsibilities of KVIC

(i) KVIC shall collaborate with DWCD and/or its agencies for the purpose of organizing awareness camps and workshops on REGP with a view to create awareness about REGP scheme of KVIC among the SHGs, formed under various schemes of DWCD, in the country.

(ii) KVIC shall co-operate with DWCD and/or its agencies to run Rural Industries Consultancy Services (RICS) and EDP centres, and shall recognize applications/project proposals from SHGs for employment generation in rural areas. DWCD shall furnish to KVIC list of agencies implementing SHGs under Swashakti/ Swayamsidha and also issue circular to the agencies advising them to cooperate with KVIC for REGP programmes.

(iii) KVIC shall provide skill development training at the training centres of KVIC to SHGs desirous of undertaking/replicating REGP project of KVIC.

(iv) KVIC shall provide facility for marketing the products produced by the SHGs formed under Swashakti/ Swayamsiddha scheme through Khadi Bhawans and bhandars situated though out the country on payment of trade commission/service charge, or whatever name it is called, on sale proceeds, to be decided separately between parties.

(v) KVIC shall provide space in the Khadi Bhavans and Bhandars to the SHGs for selling those products produced by them, which are not covered under the REGP Scheme of the KVIC, to be decided through mutual consultation between WDCs and KVIC, KVIB and their aided institutions.. Separate agreement in that regard will be entered into between the State WDC, DWCD, GOI, KVIC, KVIB and their aided institutions.

(vi) KVIC will not be by this agreement bound to underwrite sale of all SHG produce. The product to be produced and sold by SHGs will depend on marketability of product and the demand for the same. However, KVIC will assist in packaging, product development and publicity.

(vii) KVIC along with DWCD shall plan clusters for SHGs in the area of food processing as well as other products and also provide support for common facility services like Quality Control Laboratory, packaging, godown etc.

(viii)KVIC shall assist the SHGs under Swashakti/Swayamsidha in brand building trade mark of their products through supply chain management and brand marketing under REGP.

(ix) KVIC will maintain as far as practicable separate account in respect of expenditure incurred in publicity and marketing of products of Swayamsidha/ Swashakti group to enable the DWCD to share the cost. The cost attributable to advertisement and publicity, expenditure for marketing the products of SHGs formed Swa-Shakti and Swayamsiddha under REGP and Seminar/Workshops/training programmes shall be shared equally by KVIC and DWCD.

(x) KVIC and the DWCD shall function as a partner in implementing rural employment generation programme through SHGs and jointly work for the creation of more employment opportunities for women and promote the economic empowerment.

II. Role and responsibilities of DWCD

(i) DWCD shall identify the eligible interested and viable SHGs with assistance of WDCs to take up projects under REGP Scheme of the KVIC and send its recommendation list for skill development training at the Training Centres of the KVIC.

(ii) DWCD shall forward the selected/potential SHGs to the RICS run by the KVIC for project formulation, guidance and other support services. Follow up and monitor the proposals to ensure its sanction and implementation will be joint responsibility of the agreeing parties.

(iii) DWCD shall provide complete data base of SHGs undertaking as per the format required by KVIC. The said data base shall also be put up in the website of DWCD so that it could be accessed by KVIC and other agencies, whenever required.

(iv) DWCD shall coordinate with KVIC for setting up of marketing support for SHGs undertaking and also plan joint exhibitions, buyers-sellers meet etc.

(v) DWCD shall organize regular workshops and seminars jointly with KVIC to understand the problems as well as success of SHGs at national and State level.

III. Nodal Officers:

Both the KVIC and DWCD shall nominate one representative each, who shall act as Nodal Officers for effectively monitoring and operationalising the tie up.

IV. Duration of the MOU

This MOU shall remain in force initially for a period of 3 years, which can be extended for a further periods of 5 years by mutual consent in writing.

V. Termination of MOU

Either of the parties shall be entitled to terminate the agreement. However a notice in writing shall be given at least three months before the end of financial year in which the agreement is proposed to be terminated to facilitate smooth withdrawal.

VI. Settlement of disputes:

Any dispute, difference or question which may arise at any time hereafter between the Parties hereto or their representatives touching these presents or the subject matter thereof or arising out of in relation thereto and whether as to the true construction of this Memorandum of understanding or the role and responsibilities of the parties hereto shall be sorted out by mutual consultation between the CEO of the KVIC and the Secretary of the DWDC, whose decision shall be final and binding on both the parties.

IN WITNESS WHEREOF the parties hereto have executed these presents on the day and year first here in above written.

For & on behalf of KVIC, Mumbai

Smt. Maya Sinha, Commissioner,
KVIC, Mumbai under the aegis of Ministry of Agro & Rural Industries, Government of India

For and on behalf of President of India


Smt. Loveleen Kacker , Joint Secretary,
Department of Women & Child Development,

Ministry of HRD, Govt. of India

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