MSC

Mission Solar Charkha

6.9/10

The scheme “Mission Solar Charkha” a pilot project was implemented by the Ministry of Micro, Small & Medium Enterprises, Government of India. The scheme envisages setting up of Solar Charkha Clusters which would mean a focal village and other surrounding villages in a radius of 8 to 10 Kilometres.

Central Composite

States / UT: All India

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

Scheme for: Infra

Scheme profile

DBT (direct benefit transfer): No

Categories: Banking,Financial Services and Insurance

Sub-categories: Loan

Target beneficiaries: Individual, Registered Societies, Business Entity, Joint Liability Groups (JLGS), NGO, Trust

Tags: Solar Charkha, Employment, Capital Subsidy, Solar Grid, Interest Subvention, Capacity Building, Spinner, Weaver

Details

The scheme “Mission Solar Charkha” is a pilot initiative of the Ministry of MSME to promote solar-powered livelihood opportunities in rural areas. It focuses on setting up Solar Charkha Clusters covering a focal village and nearby villages within an 8–10 km radius. Each cluster includes around 200 to 2042 artisans such as spinners, weavers, and other skilled workers. The project aims to generate sustainable employment using low-cost and eco-friendly technology. Implementation of new clusters is currently on hold until the evaluation of pilot projects is completed.

Benefits

  • - Maximum Subsidy per Cluster: Financial assistance up to ₹9.599 crore for setting up one Solar Charkha Cluster. Capital subsidy for individual and for Special Purpose Vehicle (SPV):
  • 2000 Solar Charkhas at the maximum price of ₹45,000/- per charkha and a subsidy of ₹15,750/- per charkha works out to a cumulative subsidy of ₹3.15 crore for 1000 spinners
  • One unit of two Solar Charkhas would produce 2.0 kg of yarn on average per day, resulting in a production of 2.0 tons per 2000 charkhas. Thus, 500 Solar Looms would be required to convert the yarn into fabric at the maximum price of ₹1,10,000/- per loom and subsidy @35% at Rs.38,500/- per loom and the cumulative subsidy works out to ₹1.93 crore for 500 weavers
  • Capital cost of construction of workshed with a minimum space of 20,000 sq.ft with 100% subsidy at the maximum rate upto ₹1.20 crore per cluster for the SPV
  • Capital cost of Solar Grid of 50 KW capacity with 100% subsidy at the maximum rate upto ₹0.40 crore per cluster for the SPV
  • One-time Capital Cost Subsidy for the SPV @35% works out to maximum of ₹0.75 crore per Cluster for the purchase of twisting machines, dying machines and stitching machines (500 in number) for making the unit self-sustainable and for value addition. Interest subvention for Working Capital:
  • It is proposed to have a ceiling of 8% of interest subvention on working capital irrespective of the interest rates being charged by the Banks/Financial Institutions for a period of six months. Recurring Working Capital cost for a period of six months at the rate of interest subvention of 8% works out to ₹1.584 crore for one cluster including cost of roving, wages of spinners and weavers . Capacity building:
  • The scheme envisages courses for the spinners/weavers and others involved in the garmenting unit at a total cost of ₹0.595 cr per cluster for a period of two years
  • Maximum Subsidy per Cluster: Financial assistance up to ₹9.599 crore for setting up one Solar Charkha Cluster.

Capital subsidy for individual and for Special Purpose Vehicle (SPV):

  • 2000 Solar Charkhas at the maximum price of ₹45,000/- per charkha and a subsidy of ₹15,750/- per charkha works out to a cumulative subsidy of ₹3.15 crore for 1000 spinners.
  • One unit of two Solar Charkhas would produce 2.0 kg of yarn on average per day, resulting in a production of 2.0 tons per 2000 charkhas. Thus, 500 Solar Looms would be required to convert the yarn into fabric at the maximum price of ₹1,10,000/- per loom and subsidy @35% at Rs.38,500/- per loom and the cumulative subsidy works out to ₹1.93 crore for 500 weavers.
  • Capital cost of construction of workshed with a minimum space of 20,000 sq.ft with 100% subsidy at the maximum rate upto ₹1.20 crore per cluster for the SPV.
  • Capital cost of Solar Grid of 50 KW capacity with 100% subsidy at the maximum rate upto ₹0.40 crore per cluster for the SPV.
  • One-time Capital Cost Subsidy for the SPV @35% works out to maximum of ₹0.75 crore per Cluster for the purchase of twisting machines, dying machines and stitching machines (500 in number) for making the unit self-sustainable and for value addition.

Interest subvention for Working Capital:

  • It is proposed to have a ceiling of 8% of interest subvention on working capital irrespective of the interest rates being charged by the Banks/Financial Institutions for a period of six months. Recurring Working Capital cost for a period of six months at the rate of interest subvention of 8% works out to ₹1.584 crore for one cluster including cost of roving, wages of spinners and weavers .

Capacity building:

  • The scheme envisages courses for the spinners/weavers and others involved in the garmenting unit at a total cost of ₹0.595 cr per cluster for a period of two years.

Eligibility

Criteria for selection of Promoter Agency/SPV:

A. Existing Khadi and Village Industry Institution (KVI) could apply for setting up such a Cluster. However, the following parameters must be fulfilled:

  1. KVI having a positive balance sheet and assets in favour of the institution.
  2. KVI having an artisan base of not less than 200.
  3. KVI having a sales turnover of not less than ₹1.00 Crore in each of the preceding three financial years.
  4. Should have been an increase in a number of new artisans in the last three years.

B. Other Institutions such as SPV, Society, Trust, Section 8 Company or LLP under the Companies Act, 2013 registered under respective statutes could also apply for setting up a new Solar Charkha Cluster, with the following criteria:

  1. Vision and Mission
  2. Board and Governing Structure with sufficient experience.
  3. Proper Management Information System (MIS).
  4. Financial resources-equity and debt.
  5. Financial Performance for last three years-profitability and IRR.

C. First Timers who want to join the village industry movement through solar charkha clusters could apply for a new cluster, with the following criteria:

  1. Highest Commitment to the cause of Social and rural upliftment.
  2. Funding commitment from Scheduled Commercial Banks/NBFC/Venture Capital Fund/Private Equity funds.
  3. Proper Management Information System (MIS).
  4. Any other criteria to be approved by the governing council.

Promoter will fulfill the following criteria at the time of application:

  1. A baseline survey will be conducted by the promoter, and at least 200 members will be identified with Aadhaar Numbers of which at least 50% shall be women.
  2. Land of a minimum of 20,000 sq. feet and upto 2 acres will be provided by the promoter either owned or on a long-term lease of a minimum of 15 years. The land will be arranged by the promoter and all expenditure pertaining to the land will be made by the promoter.
  3. The small promoter agency will deposit at least 15% of the requirement of the working capital or at least three months' projected amount of working capital in a separate dedicated account only after the final selection of the promoter by the SSC and before the first release fund is made.
  4. The promoter agency will form a Special Purpose Vehicle (SPV), before the release of the first installment of funds, possibly a Section-8 Company or a Producer company under the Companies Act, 2013 for putting up the integrated model of solar charkhas, solar looms, sewing machines, etc. with one village being a focal village.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

6.9
/ 10
Public Benefit Score
Accessibility 6.0/10 Moderate
Rural usefulness 6.0/10 Moderate
Application complexity 7.0/10 Challenging
Financial impact 9.5/10 Good
Literacy barrier 6.0/10 Moderate
Women inclusivity 9.0/10 Good
Awareness 7.5/10 Good
Implementation reliability 7.0/10 Good
Bigger shape means a better fit for citizens
  • Accessibility6.0
  • Financial impact9.5
  • Rural utility6.0
  • Awareness7.5
  • Simplicity3.0
  • Inclusivity9.0

What problem does this scheme solve?

The Mission Solar Charkha scheme aims to promote solar-powered livelihoods in rural areas, focusing on employment generation and sustainable development.

Key challenges addressed

  • Employment generation in rural areas
  • Promotion of eco-friendly technology
  • Support for women and youth in rural economies

Most beneficial for

  • Women artisans
  • Rural communities
  • Small business entities

Likely challenges

  • Complex eligibility criteria
  • Need for substantial initial investment
  • Limited awareness among potential beneficiaries

Practical insights for citizens

The scheme has potential but faces challenges in implementation and awareness.

Rural challenges

  • Limited awareness and understanding of the scheme
  • Access to necessary resources and infrastructure

Digital challenges

  • Dependence on online application process may exclude some potential applicants

Implementation bottlenecks

  • Delay in project evaluations may stall new cluster setups

Awareness challenges

  • Low visibility of the scheme among rural populations

Application analysis

Application mode
Hybrid
Documents burden
Moderate, requires proposal submission and endorsements
Verification complexity
Moderate, involves appraisal by the Scheme Steering Committee
Office dependency
Moderate, requires offline submission to designated offices
DBT dependency
Low, not primarily reliant on direct benefit transfer
CSC support
Available through local CSCs
Estimated citizen effort
High, due to documentation and proposal requirements

Estimated beneficiary reach

  • Rural / urban reach High
  • Gender reach High
  • Target income group Low-income groups
  • Occupation reach Artisans, weavers, spinners

Benefit analysis

Benefit type
Composite
Benefit frequency
One-time and recurring support
Benefit practicality
High, as it provides substantial financial support for setting up clusters
Financial meaningfulness
High, with maximum subsidy reaching ₹9.599 crore per cluster
Long-term impact
Positive, with potential for sustainable employment and rural development

Plain-language guidance

Mission Solar Charkha helps rural communities set up solar-powered clusters for artisans, creating jobs and promoting eco-friendly practices. It supports women and youth in particular.

Who should apply
Individuals, registered societies, and NGOs interested in promoting rural employment.
Who may struggle
First-time applicants and those unfamiliar with online processes may find it challenging.
Best application route
Apply via local CSC with Aadhaar for assistance.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Online

Step 1: The applicant/Promoter Agency may visit the Official Website of Mission Solar Charkha (MSC) to apply online.
Step 2: The registered applicant may apply by clicking on ‘Apply Online”, if not registered, click on ‘New Registration’ and fill in all mandatory details.
Step 3: After successful registration, the registered applicant may ‘Login’ to apply for the scheme.
Step 4: Fill in all the mandatory details required in the application form and submit.

Offline

The interested applicants are required to submit the complete proposal (one hard copy and one soft copy) in the prescribed proforma as in Annexure-III as required along with necessary enclosures with endorsement from the Head of the Institution/ Agency/Trust/Company, desirous of anchoring Cluster development, may be sent to the following addresses:
The Chief Executive Officer, Khadi Village & Industries Commission (KVIC),
Gramodaya 3, Irla Road, Vile Parle (West), Mumbai - 400056
Telephone (022-26711577) Telefax: (022-26718289), E-mail: ceo.kvic@gov.in

Appraisal and Approval:

Step 1: The proposals for developing the cluster will be appraised based on the track record, merit, and strategies of the entity in promoting cluster development.
Step 2: The appraisal and final approval will be done by the Scheme Steering Committee.
Step 3: The performance will be monitored both on quantitative and qualitative aspects by the SSC. In case of a significant shortfall in the progress, the Promoter Agency will be changed and support may be continued to the new agency with the approval of SSC.

Clarifications

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

What is the “Mission Solar Charkha”?

The 'Mission Solar Charkha' envisages setting up of Solar Charkha Clusters which would mean a focal village and other surrounding villages in a radius of 8 to 10 Kilometres. Further, such a cluster will have 200 to 2042 beneficiaries (spinners, weavers, stitches, and other skilled artisans). Each spinner will be given two charkhas of 10 spindles each. On average, it is considered that such a cluster will have about 1000 charkhas.

Which ministry has launched ‘Mission Solar Charkha (MSC)’?

Ministry of Micro, Small & Medium Enterprises (MSME), Government of India

What are the objectives of the scheme?

The objectives of the Scheme are as Follows :- * To ensure inclusive growth by the generation of employment, especially for women and youth, and sustainable development through solar charkha clusters in rural areas. * To boost the rural economy and help in arresting migration from rural to urban areas. * To leverage low-cost, innovative technologies and processes for sustenance.

What is the maximum subsidy involved One cluster of Solar Charkha?

One cluster of Solar Charkha would involve a maximum subsidy of ₹9.599 cr.

Who can apply under the scheme?

Individual, Existing Khadi & Village Industry Institution and other Institutions such as SPV, Society, Trust, Section 8 Company or LLP under the Companies Act, 2013 registered under respective statutes could also apply for setting up a new Solar Charkha Cluster.

What are the eligibility criteria required for existing Khadi and Village Industry Institution (KVI) to apply for setting up a Cluster?

Existing Khadi and Village Industry Institution (KVI) could apply for setting up such a Cluster. However, the following parameters must be fulfilled: * KVI having a positive balance sheet and assets in favour of the institution. * KVI having an artisan base of not less than 200. * KVI having a sales turnover of not less than ₹1.00 Crore in each of the preceding three financial years. * Should have been an increase in a number of new artisans in the last three years.

What are the eligibility criteria required for other Institutions to apply for setting up a new Solar Charkha Cluster?

Other Institutions such as SPV, Society, Trust, Section 8 Company or LLP under Companies Act, 2013 registered under respective statutes could also apply for setting up a new Solar Charkha Cluster, with the Following criteria: * Vision and Mission * Board and Governing Structure with sufficient experience. * Proper Management Information System (MIS).Financial resources-equity and debt. * Financial Performance for last three years-profitability and IRR.

What role does the Scheme play in sustainable development?

The Scheme promotes sustainable development by introducing solar charkha clusters, ensuring environmentally friendly practices and creating long-term economic opportunities in rural regions.

Can institutions from any location apply to set up a Solar Charkha Cluster?

The eligibility criteria apply to institutions nationwide, but the governing council may specify additional criteria.

What is the significance of the baseline survey mentioned in the criteria?

The baseline survey helps the promoter identify a minimum of 200 members, with at least 50% being women, and gather essential details for project planning.

What happens if the promoter does not fulfill the deposit requirement for the working capital?

Non-fulfillment of the deposit requirement may impact the release of funds. Promoters are encouraged to adhere to this criterion to ensure a smooth process.

How can an applicant apply under the scheme?

Applicants can apply online through the Official Website https://kviconline.gov.in/msc/view1.jsp of the Khadi & Village Industries Commission.

References

Guidelines
https://www.kviconline.gov.in/msc/SolarCharkhaGuideline_26092019.pdf
Official Website
https://kviconline.gov.in/msc/view1.jsp

Apply

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Frequently asked questions

What is the purpose of Mission Solar Charkha?
Mission Solar Charkha is a government welfare initiative designed to support Infra, Individual, Registered Societies, Business Entity, Joint Liability Groups (JLGS), NGO, Trust through benefits related to Banking,Financial Services and Insurance, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Mission Solar Charkha?
Eligibility for Mission Solar Charkha may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Mission Solar Charkha?
Benefits under Mission Solar Charkha may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Mission Solar Charkha?
Mission Solar Charkha is managed by Ministry Of Micro, Small and Medium Enterprises and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Mission Solar Charkha?
Yes, eligible applicants may be able to apply online for Mission Solar Charkha through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Mission Solar Charkha?
Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Mission Solar Charkha?
Applications for Mission Solar Charkha may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Mission Solar Charkha?
Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Mission Solar Charkha a central government scheme?
Yes, Mission Solar Charkha is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Does Mission Solar Charkha provide healthcare or insurance support?
Mission Solar Charkha may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.
Can beneficiaries use Mission Solar Charkha at government hospitals?
Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.
Does Mission Solar Charkha provide business loan or startup assistance?
Mission Solar Charkha may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Mission Solar Charkha?
Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Mission Solar Charkha?
Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Mission Solar Charkha?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Can beneficiaries track application status for Mission Solar Charkha?
Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Mission Solar Charkha in All India?
Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Mission Solar Charkha applications?
Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.