DIRECTORATE OF REGP
KHADI AND VILLAGE INDUSTRIES COMMISSION
IRLA ROAD, VILE PARLE (WEST), MUMBAI-56.
DATE : 14-08-2006.
Sub:- Lifting of ban on Brick Bhatta
and Rice Mill in Uttar Pradesh-reg.
Ref:- 1. Order No. REGP/M-600/Varanasi/2003-04
dt.10-09-2003 of Dy. CEO (V.I.)
Letter No. REGP/M-600/Varanasi/2003-04 dt.27-02-2003 from Director (REGP)
Based on the complaints received that the old existing
units of Brick Bhatta and Rice Mill units are being provided bank finance
under Rural Employment Generation Programme (REGP) scheme, preliminary
investigations were conducted which confirmed the allegations in respect of
certain units. It was, therefore, decided by KVIC to conduct indepth survey
of all Brick Bhatta and Rice Mill units during to ascertain the factual
position. The settlement of Margin Money (M.M.) claims in respect of these
units was kept in abeyance and a ban was imposed on sanction of new REGP
projects for Brick Bhatta and Rice Mill units in uttar Pradesh.
The Physical Verification of 305 units had already been
conducted and district level committees have been constituted to verify the
documents and settle the cases of Margin Money of these units. The issue has
been examined by the Commission in its meeting No. 535 dt. 31-07-2006 and it
has been decided that the issue of ban on the sanction of Brick Bhatta and
Rice Mill Units should be looked into in detail and necessary action may be
initiated to remove the ban.
Accordingly, it has been decided that the ban on sanction
of REGP projects for Brick Bhatta and Rice Mill units will be lifted with
immediate effect from the date of issue of the circular. Concerned State
Director, KVIC, Lucknow; Divisional Director, Varanasi and Gorakhpur and
Chief Executive Officer, U.P. Khadi & V.I. Board may please note the
instructions and take necessary action immediately. The circular may also be
brought to the notice of all the Nodal Branches and Financing Banks in the
State and may also be placed in the SLBC meeting for information.
However, safeguards may be followed while sponsoring and
sanctioning the project proposals for Brick Bhatta and Rice Mill units by
Banks, KVIC & Khadi & V.I. Board offices. Guidelines issued vide circular
No. REGP/Policy/M-211(II)/06-07 dt. 17-07-2006 may be strictly followed by
KVIC/KVIB offices while sponsoring the project proposals of Brick Bhatta and
Rice Mill units to the Banks. Preliminary scrutiny and spot inspection may
be conducted to verify that the unit being set up is as per REGP norms and
is a new unit and not existing unit of Brick Bhatta or Rice Mill.
Further the following guidelines may also be strictly
followed in the matter:
Since the old matter of claim settlement is not yet
settled, opening up sanction of new units should be done with caution and
care to avoid generation of problematic cases in future.
State/Divisional offices should first properly register
all applications under REGP immediately on receipt, without any sort of
scrutiny by any official.
Time limit for scrutiny and response/forwarding stands
amended to 30 days for forwarding of project application to Bank from the
date of receipt form RICS or beneficiary directly in respect of field
offices of KVIC/KVIB. This is in supercession of the Circular no. REGP/M-436/Online
App.Tracking/2004-05/1799 dated 18/23.2.2005 wherein the time limit was
stipulated as 7 days in respect of aplication received from RICS and 15
days in respect of application received from the beneficiary directly. The
time limit has been extended to provide for the spot visit to carry out
site inspection of the project before forwarding/sponsoring the project
proposals to the Bank.
Written distribution of work and responsibility for
scrutiny needs to be issued by the concerned State/Divisional Directors to
ensure proper accountability and clarity of work in respect of preliminary
scrutiny before forwarding/sponsoring the project proposals to the Bank.
Physical Spot Verification and preliminary scrutiny of
the site of the project should be carried out in line with the guidelines
circulated vide Circular No. REGP/Policy/M-211(II)/06-07 dt. 17-07-2006.
While forwarding cases to the Bank, State/Divisional
Offices will ensure that District (Industry/Social Category) wise targets
are not exceeded and if certain area is performing better over other,
targets should be refixed before forwarding excess cases.
Receipt of the circular may please be acknowledged.
CHIEF EXECUTIVE OFFICER
All State/Divisional Directors of KVIC
All State/U.T. KVI Boards
Dr. Ramesh Yadav, Hon'ble Member, KVIC.
Jt. Chief Executive Officer, KVIC, Mumbai.
All Dy. Chief Executive Officers, KVIC, Mumbai/Guwahati.
Managing Directors of all Public Sector Banks.
Chairmen of all Regional Rural Banks.
U.P. Khadi & V.I. Board, Lucknow (U.P.)
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