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The Government has dissolved the Khadi and Village Industries Commission (KVIC) with effect from 14th October, 2004. As per the provisions of the Khadi and Village Industries Commission Act, all members including the Chairman shall vacate their office as members/Chairman of the Commission with immediate effect. This has been done to revamp the said institution as mandated under the National Common Minimum Programme (NCMP) of the United Progressive Alliance (UPA) Government to make it more professionally competent, effective and efficient body for the development and promotion of Khadi and Village Industries and for generation of more employment opportunities in the rural non-farm sector.
The Government has also issued a Resolution for the appointment of the Commissioner for Khadi and Village Industries and the functions that are to be performed by the Commissioner for Khadi and Village Industries. All liabilities incurred by, all contracts entered into with and all matters and things engaged to be done by or for the Khadi and Village Industries Commission in connection with the development of khadi or village industries at any time before the commencement of this Resolution, shall, after such commencement, be deemed to have been incurred by, entered into with, or engaged to be done by, or for, the Commissioner for Khadi and Village Industries.
The Government has also appointed Smt. Maya S. Sinha, Financial Adviser and Chief Executive Officer (In-charge) of the said Commission as the Commissioner for Khadi and Village Industries till further orders. The Commissioner for Khadi and Village Industries shall exercise all the powers of the erstwhile Khadi and Village Industries Commission and shall be responsible for the proper functioning of the dissolved Commission. All the employees of the erstwhile Khadi and Village Industries Commission, including those in the trading cadre shall continue to work under the Commissioner for Khadi and Village Industries as they were doing before the dissolution of the Commission and enjoy the same status in regard to their service matters.
The Government has also decided to appoint a Committee to examine the functioning and performance of the erstwhile Khadi and Village Industries Commission and suggest restructuring of the Commission alongwith necessary changes in the KVIC Act. The Khadi and Village Industries Commission has been dissolved to facilitate the above process and it is expected that the entire exercise including modification of the KVIC Act shall be completed shortly.
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