KGVYKVY

Khadi Gramodyog Vikas Yojana: Khadi Vikas Yojana

Khadi Gramodyog Vikas Yojana enhances the productivity and wages of Khadi artisans by improving production infrastructure and boosting employment and sales. It supports the revival of traditional rural skills, modernizes sales outlets, and promotes marketing and exports, offering financial assistance through interest subsidies and workshed support for eligible artisans and institutions.

Central Cash

States / UT: All India

Ministry / nodal: Ministry Of Micro, Small and Medium Enterprises

Scheme for: Individual

Scheme profile

DBT (direct benefit transfer): No

Categories: Business & Entrepreneurship

Target beneficiaries: Business Entity

Tags: Khadi, Gramodyog, Khadi Production, Village Industries, Khadi Artisans, Interest Subsidy

Details

The scheme "Khadi Vikas Yojana" is an umbrella scheme under "Khadi Gramodyog Vikas Yojana" and has been implemented by the Khadi and Village Industries Commission (KVIC), Ministry of Micro, Small and Medium Enterprises (MSME), Governemnt of India. It aims to support Khadi institutions and artisans by providing financial assistance, infrastructure development, interest subsidy, and marketing support. The scheme offers subsidies on Khadi production, reduces the interest burden on bank loans, facilitates the construction of worksheds for artisans, strengthens existing weak Khadi institutions, and enhances marketing infrastructure, including the renovation and modernization of sales outlets. Additionally, the scheme supports quality assurance initiatives, exhibitions, science and technology interventions, and the establishment of Centres of Excellence for Khadi

Benefits

  • Assistance provided under different components of Scheme: Modified Market Development Assistance (MMDA):
  • Subsidy @ 35% on Prime Cost for Cotton/Muslin, Wool and Polyvastra and @ 20% on Prime Cost for Silk Khadi Interest Subsidy Eligibility Certificate Scheme (ISEC):
  • Khadi Institution is required to pay only 4% interest rate. The difference between the actual Interest charged by the Bank and 4% is borne by the KVIC as “Interest Subsidy”. Work-shed Scheme for Khadi Artisans:
  • Individual workshed (20 Sq. mtrs): ₹1,20,000/- or 75% of the cost of workshed including toilet (90% for NER), whichever is less
  • Group workshed (10 Sq. mtrs per artisans): ₹80,000or 75% of the cost of the workshed including toilet (90% for NER), whichever is less. Strengthening Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure:
  • Financial assistance for revival of khadi institution with ceiling limit of ₹15.00 lakh(Capital Expenditure +working fund)
  • Financial assistance under Marketing Infrastructure for renovation of departmental sales outlets of KVIC /KVIB and institutional sales with the ceiling limit of ₹25.00 lakh. Other Components:
  • Centre of Excellence for Khadi
  • Khadi Quality Assurance
  • Marketing(Exhibition)
  • Science & Technology (S&T)

Assistance provided under different components of Scheme:
Modified Market Development Assistance (MMDA):

  • Subsidy @ 35% on Prime Cost for Cotton/Muslin, Wool and Polyvastra and @ 20% on Prime Cost for Silk Khadi

Interest Subsidy Eligibility Certificate Scheme (ISEC):

  • Khadi Institution is required to pay only 4% interest rate. The difference between the actual Interest charged by the Bank and 4% is borne by the KVIC as “Interest Subsidy”.

Work-shed Scheme for Khadi Artisans:

  • Individual workshed (20 Sq. mtrs): ₹1,20,000/- or 75% of the cost of workshed including toilet (90% for NER), whichever is less.
  • Group workshed (10 Sq. mtrs per artisans): ₹80,000 or 75% of the cost of the workshed including toilet (90% for NER), whichever is less.

Strengthening Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure:

  • Financial assistance for revival of khadi institution with ceiling limit of ₹15.00 lakh(Capital Expenditure +working fund).
  • Financial assistance under Marketing Infrastructure for renovation of departmental sales outlets of KVIC /KVIB and institutional sales with the ceiling limit of ₹25.00 lakh.

Other Components:

  • Centre of Excellence for Khadi
  • Khadi Quality Assurance
  • Marketing(Exhibition)
  • Science & Technology (S&T)

Eligibility

  1. The applicant must be a Khadi artisan or Khadi Institution registered with KVIC or KVIB.
  2. The applicant must be between 18 to 55 years of age.
  3. The applicant must have a valid Aadhaar card or government-issued ID.
  4. One person per family is eligible under the scheme.
  5. The applicant should not have availed benefits from any other government scheme for the same purpose.
  6. Preference is given to SC/ST, women, unemployed youth, and BPL category applicants.
  7. The beneficiaries may be identified by KVIC, KVIBs, NGOs, DICs, FPOs, or Khadi Institutions.

Exclusions


Application Process

Online

Step 1: Visit official website to apply under the scheme.
Step 2: On the KVIC online portal and click on “Online Registration of Khadi Institutions.”
Step 3: Fill in all required details of the institution, including name, address, type of registration, authorised person, number of artisans, and infrastructure information, then save the form.
Step 4: After submission, receive a Username, Password, and Unique ID on your registered email and mobile, and download the acknowledgement for reference.
Step 5: Login using your credentials and upload all required documents such as registration certificate, list of artisans, workshed details, and bylaws.
Step 6: The KVIC office verifies the application and documents, and once approved, the Certificate of Registration (CoR) is issued online for download.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What is Khadi Vikas Yojana (KGVY)?
Khadi Vikas Yojana is a Government of India scheme implemented by the Khadi and Village Industries Commission (KVIC) to promote Khadi production, improve artisan livelihoods, strengthen Khadi institutions, and expand marketing and exports of Khadi products. <br>
What financial assistance is provided under the scheme?
The scheme provides production subsidy under Modified Market Development Assistance (MMDA), interest subsidy through the Interest Subsidy Eligibility Certificate (ISEC), assistance for worksheds, revival of weak institutions, and support for marketing infrastructure. <br>
What is Modified Market Development Assistance (MMDA)?
MMDA provides subsidy of 35% on the prime cost for Cotton, Muslin, Wool, and Polyvastra Khadi, and 20% for Silk Khadi, helping institutions reduce production costs and increase artisan wages. <br>
What is the ISEC scheme under KGVY?
Under the Interest Subsidy Eligibility Certificate (ISEC) scheme, Khadi institutions pay only 4% interest on bank loans, while the remaining interest is borne by KVIC as a subsidy. <br>
What support is given for worksheds?
The scheme provides financial assistance for individual and group worksheds for Khadi artisans, including toilets, to improve working conditions and productivity, with higher assistance for the North Eastern Region. <br>
Is there support for weak Khadi institutions?
Yes, financial assistance up to ₹15 lakh is provided for the revival of existing weak Khadi institutions, covering capital expenditure and working capital requirements. <br>
Does the scheme support marketing infrastructure?
The scheme supports renovation and modernization of departmental and institutional sales outlets, with financial assistance up to ₹25 lakh, to improve product display and customer outreach. <br>
Are there any additional components under the scheme?
Yes, the scheme includes support for Khadi quality assurance, exhibitions, science and technology initiatives, and the establishment of Centres of Excellence for Khadi. <br>
What is the age limit for applicants?
Applicants must be between 18 and 55 years of age and must possess valid identity proof such as an Aadhaar card or other government-issued ID. <br>
Can more than one person from a family apply?
No, only one person from one family is eligible to receive assistance under Khadi Vikas Yojana. <br>

References

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Documents Required for Government Schemes

Most government schemes require basic documents for verification. While the exact requirements vary, common documents include:

  • Aadhaar Card
  • Income Certificate
  • Caste Certificate (if applicable)
  • Residence Proof
  • Bank Account Details
  • Educational Certificates (for student schemes)

How to Apply for Government Schemes?

The application process for government schemes may be online or offline depending on the scheme. In most cases, you can follow these steps:

  1. Check eligibility criteria
  2. Collect required documents
  3. Fill the application form
  4. Submit the application online or at the relevant office
  5. Track application status