Rural Industries Service Centers (RISC)

Rural Industries Service Centers (RSIC) is a common service centre which strives to provide infrastructural support and required services to the local units to upgrade their production capacity, skill upgradation and market promotion under Khadi and Village Industries Sector. In this article, we look at the objectives, eligibility and financial assistance for setting up Rural Industries Service Centers (RSIC) in detail.

Objectives of the RISC

The objectives of the Rural Industries Service Centers (RISC) are mentioned below:

To strengthen the rural clusters by providing services like skill up-gradation, training, quality control, testing facilities, marketing promotion, raw material support, design and product development.
To support for providing backwards-forward linkages to Khadi and Village Industries activities in a cluster.

Eligibility Criteria

The eligibility criteria for applying this scheme are specified here:

Farmers
Proprietors
NGOs
Cooperatives
Group of the unorganized and organized sector which includes Self-Help Groups (SHGs), rural youth etc.

Services Offered

The Rural Industry Service Centre (RISC) will provide any of the following services.

It provides testing facilities by establishing a laboratory to ensure the quality of the products.
It provides improved machinery/equipment to be utilised by the nearby units /artisans to enhance production capacity or value addition of the product.
It provides attractive packaging facilities to the local units, artisans for the best marketing of their products.

Note: Along with the above facilities RISC also cater to the following services

Providing training facilities to upgrade artisan’s skill to increase their earnings.
Providing new design or new product, diversified product in consultation with experts or agencies for value addition of rural manufacturing units.
Providing raw material support, which mainly depends on seasonal procurement.
Preparing product catalogue.

Implementing Agencies

The following are the agencies specified to implement the RISC scheme.

Khadi Village Industries Committee (KVIC) and State Khadi Village Industries Board (KVIB).
National level or State level Khadi and Village Industries Federations.
Khadi and Village Industries Institutions affiliated to KVIC and KVIB.
NGO who have worked already in implementation of programme associating to development of rural artisans in activities excluding the exception list of KVIC with financial assistance at least for three projects from any Ministry of State or Central Government, CAPART, NABARD and UN agencies.

Industrial Sectors covered under RISC

The industrial sectors which are eligible to participate in this scheme are mentioned below:

Khadi and Poly Vastra post weaving value addition facilities
Herbal products: Cosmetics and Medicines
Edible Oil
Detergents and Soaps
Honey
Hand Made Paper
Food processing
Bio-Fertilizer, Bio-Pesticides, Bio Manure
Pottery
Leather
Woodwork

Financial Pattern

The project proposals to establish Rural Industry Service Centre (RISC) up to Rs. 5 lakhs will be sanctioned by a Committee constituted for the purpose at State or Regional level.

Financial Pattern	North East States	Other States
KVIC’s share	90%	75%
Own contribution or loan from the bank or financial institutions	10%	25%

Financial Assistance

The financial assistance provided under the scheme is mentioned below. Building/Infrastructure: Up to 15% of the project cost will be provided if the fund raised for building or infrastructure. Plant and Machinery for manufacturing and or testing facilities and packaging: Up to 50% of the project cost will be offered if the fund raised for plant and machinery for manufacturing and or testing facilities and packaging. Raw material /new design, product Diversification, etc. : Up to 25% of the project cost will be provided, if fund raised for raw material, new design, product diversification, etc. Skill up-gradations and training and Product catalogue: Up to10% of Project cost will be provided if fund raised for skill up-gradation and training and product catalogue.

Release of Fund

Upon approval of the proposal by the Committee, the funds will be released in two instalments by State or Regional Directors. The initial instalment will be 50% of the amount will be released by the KVIC for the project. The final instalment will be issued only after the amount released by KVIC. The stages of programme implementation are as follows:

Cluster Identification
Selecting a Cluster Development Agency.
Technical feasibility by an expert or an agency
Project development
Approval of the project and grant of funds
Monitoring and Evaluation.

Programme Implementation

For establishing Rural Industry Service Centre (RISC), it has to be confirmed that the number of artisans, Village Industries units should not be less than twenty-five individual artisans or five Village Industries Institutions or Societies for projects upto Rs.5.00 lakhs. The implementing agency or Organisation should have its land where the Rural Industry Service Centre (RISC) is to be placed. The duration of setting up project should not be more than six months. Upon submission of the proposal by the implementing agency to set up Rural Industry Service Centre (RISC), State or Regional Director will perform technical feasibility and set the proposal with his recommendations before State Level Committee. Technical feasibility can be performed either by DIC or by State Office or State Board. The funds will be released based on the progress of work report regularly obtained from State / Regional Director and based on actions of the project, and also the completion of the project is done within the specified time frame. The State or Regional Director of the respective state where the project is located should make sure the monitoring and evaluation and up-to-date completion of the project. After receiving approval by the State Level Committee for the establishment of the project, the State or Regional Director will intimate to respective Industry Programme Directors at Central Office of the Commission.