Section 2: Definitions.

In this Act, unless the context otherwise requires,—

(a) “the Board” means the Board constituted under section 10;

(b) “chairman” means the chairman of the Commission;

(c) “Commission” means the Khadi and Village Industries Commission established under section 4; (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 and includes the chairman [Omitted ];

(f) “prescribed” means prescribed by rules made under this Act; (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;] [Omitted] [Omitted] 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 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: Provided further that in the case of any industry located in a hilly area, the provisions of 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;]