Khadi Gramodyog Vikas Yojana: Khadi Vikas Yojana

Description
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

Exclusions
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Benefits
• Assistance provided under different components of Scheme:
• Modified Market Development Assistance (MMDA):
• Work-shed Scheme for Khadi Artisans:
• Strengthening Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure:

Eligibility Criteria
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.
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Required Documents
• Aadhaar Card or other government-issued identity proof
• Age proof document
• Khadi artisan card or Khadi Institution registration certificate
• Bank account details
• Caste certificate (if applicable)
• BPL certificate (if applicable)
• Project proposal or work-shed details (if required)

Frequently Asked Questions
Q: What is Khadi Vikas Yojana (KGVY)?
A: 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.
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Q: What financial assistance is provided under the scheme?
A: 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.
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Q: What is Modified Market Development Assistance (MMDA)?
A: 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.
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Q: What is the ISEC scheme under KGVY?
A: 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.
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Q: What support is given for worksheds?
A: 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.
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Q: Is there support for weak Khadi institutions?
A: Yes, financial assistance up to ₹15 lakh is provided for the revival of existing weak Khadi institutions, covering capital expenditure and working capital requirements.
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Q: Does the scheme support marketing infrastructure?
A: 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.
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Q: Are there any additional components under the scheme?
A: Yes, the scheme includes support for Khadi quality assurance, exhibitions, science and technology initiatives, and the establishment of Centres of Excellence for Khadi.
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Q: What is the age limit for applicants?
A: 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.
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Q: Can more than one person from a family apply?
A: No, only one person from one family is eligible to receive assistance under Khadi Vikas Yojana.
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