Khadi and Village Industries from a part of rural Industries and are based on socioeconomic and cultural fabric of life. these industries constitute an important segment of the decentralised sector of our economy and provide employment mostly to the weaker section of the society of which women constitute a substantial part of the work force.

        The Gandhian which advocated Swadeshi Movement to counter the imperialistic economic policies of the British Govt. on Indian soil  and to instil confidence among the village communities for re building rural industries afresh reiterated that salvation of Indian villages lies in promotion of village and cottage industries. This suggestion which was made to meet the peculiar situation arising at that time has even greater relevance to-day, because of abject poverty and widespread unemployment. In order to achieve development with equitable distribution of income which is an essential feature of socialistic principles of our Constitution, Khadi and Village Industries appear to be the panacea for an over- populated labour abundant country like India.

        Immediately after independence it  was seen 72% of the work-force depend on agriculture having low productivity. The planners felt that emphasis should be given on promotion and development of non-farm operations to create more employment avenues. Khadi  & Village Industries (KVIC) was formed during the first five year plan by promulgation of an Act in the parliament with the aim to develop Khadi & Village Industries. The headquarters of the Commission is at Bombay & in each State they have an office to have close monitoring of implementation of their programmes. The KVIC is a service organisation to render following services.

  1. Upto 1994-95 financial assistance was provide in the form of grant and loan both for capital expenditure & working capital with preferential rate of interest i.e. 4% and easy repayment schedule. those assistance was given through the co-operative societies as per the pattern of assistance to set up Khadi & Village Industries by the societies or by the members of the societies. There was also provision to extend share capital loan & managerial grant to the co-operative societies. In the year 1995-96, the KVIc discontinued ther practice of promotion of K& VI units on fixed pattern of assistance and launched the Consortium Bank Credit Scheme on project basis with provision of margin money assistance and loan with normal rate of interest. The scheme    also envisaged direct finance to the indivisual. Again in 1999-2000 the KVIC implemented Margin money assistance in the form of subsidy is given to promote Khadi and Village Industries, both by the societies/individuals on project basis by availing loan from bank.

  2. KVIC has setup Multi-disciplinary Training Centres at different places of the country including Bhubaneswar to impart skill training on various trades and organise training programme for entrepreneurship development and marketing development.

  3. KVIC also arranges development of technology and provides technical supervision for installation and operation of machinery and equipment. They also supply plant and machinery, tools etc. in kind.

  4. KVIC conducts market study and provides marketing support to the artisans/societies for sale of their products through the gramodyog sales depot and exhibitions.

        At State levels Khadi and Village Industries Boards were formed by the State Govts. for implementation of various schemes of KVIV. For organising, developing and regulating the Khadi & Village Industries in the State of Orissa, Orissa Khadi & Village Industries Board has been setup   as a Statutory Board under Orissa Khadi & Village Industry Board Act,1955 (Orissa Act. 8 of 1956).

        The artisans under the sector have been mobilised to form industrial co-operative societies so that they could make collective efforts to undertake various activities for development of their craft/trade. After creation of DICs in each district in the year 1978 a special drive was made to bring all the artisans of a block under the banner of Block level Artisans Industrial Multipurpose Co-operative Society (AIMCS). At the same time Gramodyog Marketing Co-operative Society (GMCS) was also formed at district level to look after marketing of Khadi & Village Industries Products.

        Orissa Rajya Talgur Samabaya Sangha has also been formed by the primary palmgur co-operative society to look after development of palmgur industries in the State.