Andhra Pradesh Khadi Village Board (APKVIB)


  • The Entrepreneur shall possess 8th standard pass for setting up of projects costing more than Rs.10.00 lakhs under manufacturing sector and above Rs.5.00 lakhs under service sector.



The Andhra Pradesh Khadi & Village Industries Board, Nellore is situated in District Industries Centre, A.K.Nagar, Nellore.

Andhra Pradesh Khadi and Village Industries Board has been formed in the year 1959 with a motive to encourage the Rural Artisans in sitting up of tiny and small scale industries and to generate more employment potentiality in Rural and remote villages until 1997-98. Andhra Pradesh Khadi and Village Industries Board has financed to a number of artisans under various trades Viz., Pottery, Lime Kilns, Stone cutting, Leather, Carpentry and Black smithy, Basket making, chalk pieces making, leaf plate making, cottage match, cereals & pulses broom stick making with which many artisans in Rural areas were benefited for their day-to-day livelihood.

Government of India has approved the introduction of a

new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MSME).

The Scheme will be implemented by Khadi and Village Industries

Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centers (DICs) and banks. The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts.

Panchayati Raj institutions and other relevant bodies in the implementation of the Scheme, especially in the area of identification of beneficiaries, of area specific viable projects, and providing training in entrepreneurship development.


(i) To generate employment opportunities in rural as well as urban areas of the country through setting up of new self employment ventures/ projects/ micro enterprises.

(ii) To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self employment opportunities to the extent possible, at their place.

(iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.

(iv) To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

Quantum and Nature of Financial Assistance

Levels of funding under PMEGP

Categories of beneficiaries under PMEGP Beneficiary’s Contribution (of project cost) Rate of Subsidy (of project cost)
Area (location of project/unit)   Urban Rural
General Category 10% 15% 25%
Special (Including SC/ST/OBC/Minorities/Women, Ex-Servicemen, Physically handicapped, NER, Hill and Border areas etc. 05% 25% 35%


The identification of beneficiaries will be done by inviting online applications and placed before the District Task Force Committee of PMEGP for Scrutinizing and selecting of Candidates. The district level by a Task Force consisting of representatives from KVIC/State KVIB and State DICs and Banks. The Task force would be headed by the District Magistrate / District Collector concerned. The Bankers should be involved right from the beginning to ensure that bunching of applications is avoided. However, the Banks will refer the application to the Task Force for its consideration. Exaggeration in the cost of the project with a view only to availing higher amount of subsidy should not be allowed. KVIC will devise a score card in consultation with SBI and RBI, and forward it to the District Level Task Force and other State/District functionaries. This score board will form the basis for the selection of beneficiaries. This score card will also be displayed on the websites of KVIC and Ministry. The selection process should be through a transparent, objective and fair process and Panchayati Raj Institutions should be involved in the process of selection. The EDP Training will be given to the beneficiaries before releasing the first installment of loan by the concerned Banks.

The maximum project cost is Rs. 25.00 lakhs under Manufacturing sector and Rs.10.00 Lakhs under Service sector.

During the year 2018-19 A.P Khadi and V.I Board, Amaravathi has allotted targets of 25 units covering a Margin Money of Rs. 75.00 Lakhs to Nellore District. Out of which 23 units financed by the different banks covering a Margin Money of Rs. 68.42 Lakhs were disbursed.