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KHADI AND VILLAGE INDUSTRIES COMMISSION (AMENDMENT) ACT 2006

THE KHADI AND VILLAGE INDUSTRIES COMMISSION (AMENDMENT) ACT, 2006
NO. 10 OF 2006
[22nd March, 2006.]
An Act further to amend the Khadi and Village Industries Commission
Act, 1956.
BE it enacted by Parliament in the Fifty-seventh Year of the Republic
of India as follows:-
1.
Short title and commencement.
1.
Short title and commencement.-(1) This Act may be called the Khadi
and Village Industries Commission (Amendment) Act, 2006.
(2) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, specify in this
behalf.
2.
Amendment of section 2.
2. Amendment of section 2.-In section 2 of the Khadi and Village
Industries Commission Act, 1956 (61 of 1956) (hereinafter referred to
as the principal Act),-
(i) in clause (ff), for the words "ten thousand", the words "twenty
thousand" shall be substituted;
(ii) in clause (h), in sub-clause (i),-
(A) for the words "fifteen thousand rupees", the words "one
lakh
rupees" shall be substituted;
(B) after the proviso, the following proviso shall be inserted,
namely:-
'Provided further that
in the case of any industry located in a hilly
area, the provisions of this sub-clause shall have effect as if for
the words "one
lakh rupees", the words "one lakh and fifty thousand
rupees" had been substituted.'.
3.
Amendment of section 4.
3. Amendment of section
4.-In section 4 of the principal Act,-
(a) after sub-section (1), the following sub-section shall be
inserted, namely:-
"(1A) Save
as otherwise provided under this Act and the rules made
thereunder, the exercise of all powers and discharge of all functions
under
this Act, including general superintendence, direction and
management of day-to-day affairs of the Commission, shall vest in the
Commission.";
(b) in sub-section (2),-
(i) in clause (a), for the words "having specialised knowledge and
experience of khadi and
village industries", the words "having
specialised knowledge and not less than ten years of experience of
khadi or village industries"
shall be substituted;
(ii) for clause (b), the following clause shall be substituted,
namely:-
(b) four non-official members of whom
each member shall be from the
following disciplines, namely:-
(i) one member having expert knowledge and experience in Science and
Technology;
(ii) one member having expert knowledge and experience in Marketing;
(iii) one member having expert knowledge and experience
in Rural
Development; and
(iv) one member having expert knowledge and experience in Technical
Education and Training;
(iii) after
clause (b), the following clause shall be inserted,
namely:-
"(ba) the Chairman of the State Bank of India constituted under sub-
section (1) of section 3 of the State Bank of India Act, 1955 (23 of
1955) or an officer not below the rank of the Deputy Managing
Director as may be nominated by the Chairman of the State Bank
of
India-ex-officio;";
(iv) for clauses (c) and (d), the following clauses shall be
substituted, namely:-
"(c) a Chief Executive
Officer, ex-officio; and
(d) a Financial Adviser, who shall also be the Chief Accounts
Officer of the Commission, ex-officio.";
(v)
after clause (d), the proviso shall be omitted.
4.
Amendment of section 5.
4. Amendment of section 5.-In section 5 of the principal
Act,-
(a) for sub-section (1), the following sub-sections shall be
substituted, namely:-
"(1) Subject to the provisions contained
in sub-section (1A) of
section 4, the Chief Executive Officer, appointed under clause (c) of
sub-section (2) of section 4, shall
exercise such powers and
discharge such functions in respect of general superintendence over
the affairs of the Commission and its
day-to-day management, as may
be prescribed.
(1A) Without prejudice to the powers and functions referred to in
sub-section (1), the
Chief Executive Officer shall exercise such
powers and discharge such functions under the general
superintendence, direction and
management of the Commission.".
(b) in sub-section (2), for the words "shall be responsible", the
words "shall, in addition to exercise
of the powers and discharge of
the functions referred to in sub-section (1), be responsible" shall
be substituted.
5.
Amendment of
section 5A.
5. Amendment of section 5A.-In section 5A of the principal Act, for
the words, brackets, letter and figures "appointed
under clause (c)
of sub-section (2) of section 4 shall be in charge of all financial
matters of the Commission including its budget,
accounts and audit",
the words, brackets, letter and figures "appointed under clause (d)
of sub-section (2) of section 4 shall be
in charge of such financial
matters of the Commission including its budget, accounts and audit,
as may be prescribed" shall be substituted.
6.
Amendment of section 10.
6. Amendment of section 10.-Section 10 of the principal Act, shall be
numbered as sub-section (1) thereof
and,-
(a) in sub-section (1) as so numbered, for the words "Khadi and
Village Industries Board'', the words ''National Khadi and
Village
Industries Board'' shall be substituted;
(b) after sub-section (1) as so numbered, the following sub-sections
shall be inserted,
namely:-
"(2) The Board shall, subject to the provisions of sub-section (3),
meet at such times and places and observe such rules
of procedure
in regard to the transaction of business at its meetings including
the quorum at meetings as may be prescribed.
(3)
The Board shall meet at least twice in a year.".
7.
Amendment of section 12.
7. Amendment of section 12.-In section 12 of the principal
Act, in
sub-section (3), for the words "votes of the members present", the
words and brackets "votes of the members (including ex-officio
members) present" shall be substituted.
8.
Insertion of new section 12A.
8. Insertion of new section 12A.-After section 12 of the
principal
Act, the following section shall be inserted, namely:-
"12A. Zonal Committee.-(1) The Commission shall constitute for each
of the six geographical zones, referred to in clause (a) of sub-
section (2) of section 4, a Zonal Committee, which shall consist
of
the following, namely:-
(a) the non-official member representing the zone, referred to in
clause (a) of sub-section (2) of section
4, who shall be the Chairman
of the Zonal Committee constituted for respective zones;
(b) one representative of each of the State
Khadi and Village
Industries Boards of the States or, as the case may be, the
Government of each State in the zone, to be notified
by the Central
Government in consultation with the State Government concerned-
member;
(c) the Zonal Deputy Chief Executive Officer
of the Commission, who
shall be the convener of the Zonal Committee-member;
(d) the State Directors in charge of the Commission's
Directorates
for the States in the zone-member;
(e) a Zonal or Regional manager of one of the lead banks operating in
the zone-member; and
(f) one representative of an
institution of repute, working for at
least ten years in the khadi or village industries sector and having
a good record of performance,
from each State in the zone, to be
notified by the Central Government-member.
(2) The Zonal Committee shall meet at such times and
places and
shall, subject to the provisions of sub-section (3), observe such
rules of procedure in regard to the transaction of business
at its
meetings (including the quorum at the meetings) as may be provided by
regulations made by the Commission under this Act:
Provided
that the Committee shall meet at least once in every three
months.
(3) The Chairman of the Zonal Committee or, in his absence, any
member chosen by the members present from among themselves, shall
preside at a meeting of the Committee.
(4) The Zonal Committee
shall generally function as a forum for
consultation and, accordingly, inter alia,-
(a) act as a conduit for the dissemination of
information relating to
the programmes and schemes of the Commission for the development of
khadi and village industries in the zone;
(b) monitor, from time to time, the implementation of the programmes
and schemes referred to in clause (a);
(c) provide feedback
to the Commission on the problems and
difficulties envisaged and suggestions made by banks, voluntary
agencies, artisans and others
engaged in the operation of programmes
and schemes referred to inclause (a).".
9.
Amendment of section 13.
9. Amendment of section
13.-In section 13 of the principal Act, in
sub-section (1), for the words "for a term of five years", the words
"at the pleasure
of the Central Government which shall not exceed
continuous period of five years" shall be substituted;
10.
Amendment of section
15.
10. Amendment of section 15.-In section 15 of the principal Act,-
(a) in sub-section (1), for the words "plan, promote, organise",
the
words "plan, promote, facilitate, organise" shall be substituted;
(b) in sub-section (2),-
(i) in clause (a), for the words "plan
and organise", the words "plan
and organise, directly or through specified agencies" shall be
substituted;
(ii) in clause (b),-
(A)
for the words "build up", the words "build up, directly or
through specified agencies," shall be substituted;
(B) for the words "supply
them", the words "supply them or arrange
supply of the raw materials and implements" shall be substituted;
(iii) in clause (g), for
the words "provide financial assistance",
the words "provide financial assistance, directly or through
specified agencies," shall
be substituted;
(iv) in clause (h), for the words "undertake experiments", the words
"undertake, directly or through specified agencies,
experiments,"
shall be substituted;
(c) after sub-section (2), the following Explanation shall be
inserted at the end, namely:-
'Explanation.-For
the purposes of clauses (a), (b), (g) and (h) of
sub-section (2), the expression "specified agencies" means the
agencies which the
Central Government may, by notification in the
Official Gazette, specify in this behalf.'.
11.
Amendment of section 19A.
11. Amendment
of section 19A.-In section 19A of the principal Act, in
sub-section (1), the following proviso shall be inserted, namely:-
"Provided
that the Chief Executive Officer and Financial Adviser
shall be ex-officio members of the Standing Finance Committee in
respect of
each of the three separate funds referred to in sub-
section (1) of section 18.".
12.
Amendment of section 25.
12. Amendment of section
25.-In section 25 of the principal Act,
after sub-section (2), the following sub-section shall be inserted at
the end, namely:-
"(3)
Any time after the issue of the notification under sub-section
(1), the Central Government may re-establish the Commission in
accordance
with the provisions of section 4 and on and from the date
of the re-establishment of the Commission, the properties and funds
which had previously vested in the Central Government under clause
(a) of sub-section (2) shall stand vested in the Commission so re-
established.".
13.
Amendment of section 26.
13. Amendment of section 26.-In section 26 of the principal Act, in
sub-section (2), after clause (a),
the following clauses shall be
inserted, namely:-
"(aa) the powers to be exercised and functions to be discharged by
the Chief Executive
Officer under sub-section (1) of section 5;
(ab) the financial matters in respect of which the Financial Adviser
shall be in charge
under section 5A;
(ac) the transaction of business at the meetings of the Board under
sub-section (2) of section 10;".
14.
Amendment
of section 27.
14. Amendment of section 27.-In section 27 of the principal Act, in
sub-section (2),-
(i) after clause (b), the following
clause shall be inserted,
namely:-
"(ba) the transaction of business at the meetings of the Zonal
Committee under sub-section (2)
of section 12A;";
(ii) in clause (c), the words "the Chief Executive Officer or" shall
be omitted.
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T. K. VISWANATHAN,
Secy.
to the Govt. of India.
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