The Nagaland Khadi & Village Industries Board is a statutory body constituted by the Government of Nagaland under the Act (No. 5 of 1978) of Nagaland Legislative Assembly and it started functioning in January 1979. The main function of the Board is to implement the programmes in accordance with the Khadi & Village Industries Commission (KVIC) pattern of assistance from time to time. Thus, the NKVIB is not a profit making organization of its own but to implement the programmes and scheme of KVIC by providing assistance in the form of marginal grant to the beneficiaries/units financed by the banking agencies under PMEGP scheme to promote Khadi & V.I. activities in the State.
As per the provision of the Act, under Chapter V Clause 25(i) “… the establishment expenditure of the State Board will be the sole responsibility of the State Government. Similarly it may grant subvention compensation irrecoverable debts.”