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Tamilnadu has tremendous employment opportunities in rural Industries.  To tap this potential and to provide employment opportunities, the Tamilnadu Khadi and Village Industries Board was formed in April 1960 under the Tamilnadu Khadi and Village Industries Board Act, 1959. 


The object of the Board is to develop the Khadi and Village Industries in rural areas in collaboration with likeminded agencies engaged in rural development work.  The Board has been doing its yeomen service for the development of Khadi and Village Industries in this State particularly in rural areas for the past four decades.   The Board is the authority to register  Co-operative Societies formed by likeminded  people under the Co-operative Societies Act to develop Khadi and Village Industries.    The Board through these Co-operative Societies also promotes Khadi and Village Industries and thereby provides maximum possible level of employment opportunities to the rural artisans.


The State and Central Governments provide financial support in the form of grants to the Board for supply of bee-hives to the Rural folks and Tribals in Hill areas, for modernization of looms to weavers and other equipments, to village artisans.  The various schemes implemented by the Board through the financial assistance of the State and Central Governments are as follows:-



Name of the Scheme

Amount assisted

(Rs. in lakhs)

No. of beneficiaries


Integrated Tribal Development Programme




Western Ghats Development Programme for the welfare of artisans




Hill Area Development  Programme exclusively for the development of the artisans in and around the Nilgris district




Special Central Assistance for Scheduled Castes



                   Our commitment


 (i) Offer to provide employment to the weaker sections of  rural  areas such as spinners and weavers; and especially for women at their door steps through 210 Rural Textile Centres and 86 Khadi production Sub-Centres spread all over Tamilnadu .


(ii) Offer employment under Village Industries schemes to alleviate rural poverty by utilizing the locally available raw materials and man power through Departmental Units and Industrial Co-operatives for Cobblers, Potters, Carpenters, Black-smithy, Bee-Keepers, etc;


(iii) Offer to promote the sale and marketing of Khadi and products of Village Industries or Handicrafts and bridge linkages with established marketing agencies wherever necessary and feasible;


(iv) Offer requisite technical as well as training facilities to needy artisans wherever and whenever necessary;


(v) Offer special employment opportunities to the Village Industries artisans in rural areas, for which a scheme called "Margin Money Scheme" has been introduced.  All interested Artisans can avail these opportunities as detailed in the list of activities ; and


(vi) The Board will acknowledge complaints immediately and act on the same in a fair and free manner; 



Your responsibility 


In return, the Tamilnadu Khadi and Village Industries Board would expect you; -

(i.)  to approach the Assistant Director of Khadi and Village Industries in each District for any needed information regarding the activities of the Khadi and Village Industries for extending  financial and technical guidance;


(ii)  to complete all necessary formalities by furnishing honest and correct information;


(iii) to feel free to approach the Board whenever the need arises; and


(iv) to write to the Board, if you have any suggestions or comments on this matter. Further for product details please visit our web site:, our email address is khadi[at]giasmd01[dot]vsnl[dot]net[dot]in


In addition to the creation of direct employment to rural folks by the Board and its affiliated Institutions, the Board helps the individual artisans through "Margin Money Scheme" under Rural Employment Generation Programme.  This assistance is provided as per the guidelines laid down by the Khadi and Village Industries Commission, Mumbai. There are 119 Village Industries identified by the Khadi and Village Industries Commission, Mumbai for eligibility for financial assistance under this scheme.  The financial assistance is provided to the beneficiaries through banks. A subsidy of upto a maximum of 30% is being provided through the Board to the beneficiaries identified by the Bank from the amount provided by the Khadi and Village Industries Commission.  The Khadi and Village Industries Commission had allocated a sum of Rs.2.81 crores for 2002-2003 under Margin Money Scheme.  The Board is taking all efforts to implement the scheme. 


The resources of the Board can be classified mainly under State Government budget support and Board's sales proceeds.  The Government budget support is mainly in the form of rebate subsidy, staff cost grant for non trading side and grants for various schemes under Part-II schemes.  In addition to this, Government also provides funds for audit fees for auditing the accounts of the Board which will be adjusted against Government receipts.