Chapter III Functions and Powers of the Board.

1. (1) It shall be the duty of the Board to encourage, organise, develop and regulate Khadi and Village Industries and perform such functions as the functions as the Government may prescribe from time to time.
2. (2) Without prejudice to the generality of the provisions of sub- section (1) the board shall also in particular discharge and perform all or any of the following duties and functions, namely:-
   • (a) to start, encourage, assist and carry on Khadi and Village Industries and to carry on trade or business in such industries and in the matters incidental to such trade or business;
   • (b) to help the people by providing them with work in their homes and to give loans and other form of monetary help to individuals or societies or institutions on such terms as may be prescribed;
   • (c) to encourage establishment of co-operative societies for Khadi and Village Industries;
   • (d) to conduct training centres and to train people there at with a view to equipping them with the necessary knowledge for starting or carrying on Khadi and Village Industries.
   • (e) (i) to manufacture tools and implements required for carrying on Khadi and Village Industries and to manufacture the products of such industries;
     • (ii) to arrange for the supply of raw materials and tools and implements required for the same purposes; and
     • (iii) to sell and to arrange for the sale of the products of the said industries;
   • (f) to arrange for publicity and popularising of finished products of Khadi and Village Industries by opening stores, shops, emporia or exhibition and to take similar measures for the purposes;
   • (g) to endeavour to educate public opinion and to impress upon the public the advantages of patronising the products of Khadi and Village Industries;
   • (h) to seek and obtain advice and guidance of experts in Khadi and Village Industries.
     • (i) to undertake and encourage research work in connection with Khadi and Village Industries and to carry on such activities as are incidental and conducive to the objects of this Act.
   • (j) to discharge such other duties and to perform such other functions as the Government may direct for the purpose of carrying out the objects of this Act.

The Board shall, for the purpose of carrying out its functions under this act, have the following powers, namely-

1. (i) to acquire and hold such movable and immovable property as it deems necessary and to lease, sell or otherwise transfer any such property; Provided that any lease, sale/mortgage, hypothetication or other transfer to any persons or authority other than the Khadi and Village Industries Commission of any immovable property belonging to the Board shall be null and void unless it is sanctioned by the Government.
2. (ii) to incur expenditure and undertake any work in any area in the State for the framing and execution of such schemes as it may consider necessary for the purpose of carrying out the provisions of this Act, or as may be entrusted to it by the Government; (iii)to borrow money from the Khadi and Village Industries Commission and also to hypothecate or mortgage properties as securities against the loans;
3. (iv) to write off minor irrecoverable losses as provided for under Section 35 of this Act.

1. (1) The Board may enter into and perform all such contracts as it may consider necessary or expedient for carrying out any of the purposes of this Act.
2. (2) Every contract shall be made on behalf of the Board by its Chairman; Provided that the Chairman may, by an order in writing, delegate his powers in this behalf to the Vice-Chairman, Secretary or Chief Executive Officer.
3. (3) Every contract made on behalf of the Board shall subject to the provisions of this section, be entered into in such manner and form as may be prescribed.
4. (4) A contract not executed in the manner provided in this section and the rules made thereunder, shall not be binding on the Board.

In the performance of its functions under this Act, the Board shall be bound by such direction as the Khadi and Village Industries Commission may giver to it from time to time in the implementation of Schemes financed by the Commission.