The woven khadi is obtained from two handloom units in the Dharwad and Bagalkot districts of northern Karnataka. Currently, Karnataka Khadi Gramodyoga Samyukta Sangha based in Hubli is the only licensed flag production and supply unit in India. Permission for setting up flag manufacturing units in India is allotted by the Khadi Development and Village Industries Commission, though the BIS has the power to cancel the licences of units that flout guidelines. The hand-woven khadi for the National Flag was initially manufactured at Garag, a small village in the Dharwad district. A Centre was established at Garag in 1954 by a few freedom fighters under the banner of Dharwad Taluk Kshetriya Seva Sangh and obtained the Centre's licence to make flags.