Owing to its Geographical locational disadvantage and connectivity constraints major industries could not develop in the state of J&K. The absence of developed organized industrial sector aggravates the problem of providing employment to youth of the state. Out of the youth who have registered themselves with the Directorate of Employment more than 86% are educated and 9% have received vocational training (Digest of statistics2006-07).

The Village/Micro Industrial Sector, production, processing and packaging of agricultural / horticultural products, Service Sector like transport, health care, construction related service activities etc. are the few sectors which offer the potential for sustainable industrial development and Employment Generation in the state of J&K. There is an urgent need to catalyze and invigorate the Village Industries & Micro Industrial Sector of the state in the back drop of rampant unemployment levels prevailing in the state.

J&K Khadi & Village Industries Board has been involved in planning, promoting, developing and organizing Micro Industrial Sector in the state falling within the purview of the activities of Khadi and Village Industries Sector. From inception till ending December 2017 J&K Khadi & Village Industries Board has established 47,076 number of units thereby providing employment opportunities for more than two lakh artisans / village industries workers. The performance of the Board with regard to implementation of Rural Employment Generation Programme has been applauded at the national level and J&K Khadi & Village Industries Board has been adjudged as the best performing. The Board throughout the country in the year 2007- 2008 and has been conferred “Best KVI Board” Non NE Zone National Award-2011 for excellence in the field of Khadi & Village Industries during the year 2010-11.The Board has the necessary paraphernalia and the requisite experience to implement the employment generation programmes effectively.

To harness and divert the energy and enthusiasm of the youth of the state for establishment of the productive enterprise in micro industrial sector and to create employment opportunities in rural as well as urban areas of the state, a new credit linked subsidy programme namely J&K Rural Employment Generation Programme (JKREGP) is proposed.

The programme will be implemented by J&K Khadi and Village Industries Board and the subsidy will be routed through J&K Bank for eventual distribution to the beneficiaries / entrepreneurs in their bank accounts.

The implementing agency will associate Office of the concerned District Development Commissioners, Lead district managers, Directorate of Industries, Financing banks, Entrepreneurship Development Institute and Nehru Yuva Kendras and other relevant bodies in the implementation of the scheme, especially in the area of identification of beneficiaries, area specific viable projects and providing training in entrepreneurship development.