Section 2 of KVIC Act : Section 2: Definitions

Explanation using Example

Imagine a scenario where a local entrepreneur, Priya, wants to start a business producing handwoven cotton bags in her small town, which has a population of 18,000 people. To understand the benefits and regulations she needs to comply with, she refers to The Khadi and Village Industries Commission Act, 1956.

Under this Act, Priya learns that her business qualifies as a "village industry" because it is located in a "rural area" (as the population does not exceed twenty thousand) and involves the production of "khadi" (handwoven cotton bags). Additionally, she ensures that the "fixed capital investment" per worker does not exceed one lakh rupees, which is the threshold for a business to be recognized as a village industry.

She also discovers that she can seek assistance from "the Commission," which is established under the Act to promote khadi and village industries. Priya decides to attend a meeting organized by "the Board" of the Commission to gather more information and potentially secure support for her business. At the meeting, she interacts with the "chairman" and other "members" of the Commission to discuss her business plan and explore avenues for funding and training.

By applying the definitions and provisions of The Khadi and Village Industries Commission Act, 1956, Priya is able to align her business with the Act's requirements and take advantage of the resources provided for the promotion of khadi and village industries.