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Khadi and Village Industries Commission Act, 1956


2. Definitions.

In this Act, unless the context otherwise requires,--

a.       "the Board" means the Board constituted under 1*[section 10];

b.       "chairman" means the chairman of the Commission;

c.       "Commission" means the Khadi and Village Industries Commission established under section 4;

cc     2*[ "fixed capital investment" includes investment in plant and machinery and land and building of an industry;]


  1. "khadi" means any cloth woven on handlooms in India from cotton, silk or woollen yarn handspun in India or from a mixture of any two or all of such yarns;

  2. "member" means a member of the Commission 3*[and includes the chairman 4***];

  3. "prescribed" means prescribed by rules made under this Act;

ff.      5*[ "rural area" means the area comprised in any village, and includes the area comprised in any town, the population of which does not exceed ten thousand or such other figure as the Central Government may specify from time to time;] 6* * * * **The Act comes into force in Pondicherry on 1.10.1963 vide Reg. 7 of 1963, s. 3 and Sch.

  1. I.*Extended to Goa, Daman and Diu by Reg. 11 of 1963, s. 3 & sch.
  2. Subs. by Act 36 of 1957, s. 3 and Sch. II, for "section 9".
  3. Ins. by Act 12 of 1987, s. 2 (w.e.f. 24.7.1987).
  4. Subs. by Act 32 of 1961, s. 2, for "and includes the chairman".
  5. Certain words omitted by Act 12 of 1987, s. 2 (w.e.f. 24.7.1987).
  6. Ins. by s. 2, ibid. (w.e.f.24.7.1987).
  1. and (gg) omitted by s. 2, ibid. (w.e.f. 24.7.1987).
  2. 180 1*"village industry" means,--

  1. any industry located in a rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed fifteen thousand rupees or such other sum as may, by notification in the Official Gazette, be specified from time to time by the Central Government:

Provided that any industry specified in the Schedule and located in an area other than a rural area and recognised as a village industry at any time before the commencement of the Khadi and Village Industries Commission (Amendment) Act, 1987 shall, notwithstanding anything contained in this sub  lause, continue to be a village industry under this Act;

  1. any other non-manufacturing unit established for the sole purpose of promoting, maintaining, assisting, servicing (including mother units) or managing any village industry;] 3. [Power to add to the Schedule.] omitted by Act 12 of 1987, s.3 (w.e.f. 24.7.1987).



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