Section 2:
Definitions.
n 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;
2
[(cc) "fixed capital investment" includes investment in plant and machinery and land and
building of an industry;]
(d) "khadi" means any cloth woven on handlooms in India from cotton, silk or woolen yarn
handspun in India or from a mixture of any two or all of such yarns;
(e) "member" means a member of the Commission 3
[and includes the chairman 4
***];
(f) "prescribed" means prescribed by rules made under this Act;
5
[(ff) "rural area" means the area comprised in any village, and includes the area comprised in any
town, the population of which does not exceed 6
[twenty thousand] or such other figure as the Central
Government may specify from time to time;]
7
* * * * *
8
* * * * *
9
[(h) "village industry" means,--
(i) 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 10[one lakh 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 (12 of 1987), shall, notwithstanding
anything contained in this sub-clause, continue to be a village industry under this Act:
11
[Provided further that in the case of any industry located in a hilly area, the provisions of this
this sub-clause shall have effect as if for the words "one lakh rupees", the words "one lakh and
fifty thousand rupees" steal.]
(ii) any other non-manufacturing unit established for the sole purpose of promoting,
maintaining, assisting, servicing (including mother units) or managing any village industry;]
Notes:
1. Subs. by Act 36 of 1957, s. 3 and the Second Schedule, for "section 9" (w.e.f. 17-9-1957).
2. Ins. by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
3. Subs. by Act 32 of 1961, s. 2, for "and includes the chairman" (w.e.f. 28-8-1961).
4. The words "and the vice-chairman" omitted by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
5. Ins. by s. 2, ibid. (w.e.f. 24-7-1987).
6. Subs. by Act 10 of 2006, s. 2, for "ten thousand" (w.e.f. 15-5-2006).
7. Omitted by Act 12 of 1987, s. 2 (w.e.f. 24-7-1987).
8. Omitted by s. 2, ibid. (w.e.f. 24-7-1987).
9. Subs. by s. 2, ibid., for clause (h) (w.e.f. 24-7-1987).
10. Subs. by Act 10 of 2006, s. 2, for "fifteen thousand rupees" (w.e.f. 15-5-2006).
11. The proviso ins. by Act 10 of 2006, s. 2 (w.e.f. 15-5-2006).