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Introduction : This scheme has been implementing since November 2002 by KVIC for development of product, design intervention and packaging of the final products.

1. Directly aided institutions of the KVIC & state KVIB belong to A+, A, B and C category.
2. REGP units registered with KVIC and whose margin money has been adjusted.
3. Departmental production/marketing units of the KVIC and KVIBs.
4. All public institutions such as technical institutes,, etc.

Source of Funds for the Scheme : PRODIP projects under Khadi & Village Industries shall be finaaanced out of Khadi& V.I. Grant respectively.

1. Projects relating to improvement or experimentation with raw material, yarn, cloth, etc.
2. Project relating to diversification of product line.
3. Projects relating to conversion of existing stocks etc.
4. Projects relating to Khadi & V.I. products etc.

Financial Pattern : In the case of eligible institutional entities asistance will be limited to Rs. 2 lakh per project per year or75% of the project cost whichever is less.
In the case of eligible entrepreneurial unit's assistance will be limited to Rs. 1 lakh per project per year or 75% of the project cost, whichever is lower.

Project Pattern:
1. Up to 50% for Equipment & Tools/Capital Equipments.
2. Around 15% for Design Development. 
3. 15% for training and skill developments.
4. 10-15% for Designer's Fee
5. 5% for Documentations.
6. 3% for Scheme Managemnt, 2% for pre-sanction exp.

Benifit of the Society: By implementing PRODIP, the society is able
1. To produce wide range of fabric.
2. To make variation in the designs of the product.
3. To fulfill customer's satisfaction.
4. To compete in the present scenario.
5. To increase the demand of customers.