The Khadi and Village Industry Commission (KVIC) was setup in 1957 to cover 10 village industries, besides khadi (cottage or handloom weaving). In 1987, its scope was expanded to 96 industries, as varied as jaggery-making and electronics.

To help develop a village industry, the KVICoffers artisans an aid package including financial and marketing assistance, subsidies, technical know-how and training. The programmes are implemented through the state KVI boards (KVIB), 3,500 NGOs and 30,000 cooperative societies. OVer the years, the KVIC and KVIBs have grown into" behemoths, covering two lakh villages, accounting for production of goods worth Rs 2,876 crore (1993-94) and employing 39.40 lakh persons. "

The KVIC's dismal performance and R&D record have exposed it to severe stringent criticism. In 1955, the D G Kar committee on village and smallscale industries had advocated technological upgradation and training to equip the sector", for meeting consumer needs. But the KVIC's growth rate ofgran($has declined over the years.

Moreover, dissemination of R&D results is shoddy. For instance, while the KVIC has developed power and hand-operated machines for fibre extraction, mat-weavers of Kerala continued to arduously dethorn screwpine leaves manually, a chance visit to a KVIC stall at a Bombay fair brought these inexpensive gadgets to their notice.

KVIC officials cite paucity of funds as the prime reason for their ineffectiveness. "It is not that we are insensitive. In the last decade, we were allocated only Rs 200 crore. ObviousJy,we Could not do much," says Nawal Kishore Sharma. chairperson, KVIC.