Agarbatti Making Project under Gramodyog Vikas Yojana (GVY) Scheme

The Agarbatti Making Project is a component under the “Polymer & Chemical Based Industry (PCBI)” vertical of the Gramodyog Vikas Yojana (GVY), implemented by the Khadi & Village Industries Commission (KVIC), under the Ministry of Micro, Small & Medium Enterprises (MSME). The purpose of this project is to revive and scale up domestic agarbatti (incense stick) production, reduce import-dependence, create employment in rural and semi-rural areas, impart training to artisans, provide machinery/raw material assistance, and establish backward & forward linkages for the industry. Your benefit as an MSME: you can apply (individually or as a group/SHG) to receive training, get access to automatic agarbatti-making machines, mixing machines, raw material assistance, and thereby start or expand a small agarbatti unit under this scheme.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Free Skill Upgradation Training: The guidelines specify a 10-day free upgradation training with 20 candidates per batch in agarbatti making (GVY-PCBI vertical)
Assistance of Machines & Raw Material: After or along with training, you may get assistance with automatic agarbatti-making machines, powder/mixing machines, and raw material support for manufacturing of agarbatti.
Cluster Approach & Machines: The scheme initially targets clusters: e.g., each cluster of 50 automatic machines + 10 mixing machines for one cluster.
Employment Generation & Linkages: It emphasises creating sustainable employment for artisans, enhancing wages, and developing backward & forward linkages (raw material, machine supply, marketing).
Preference & Age Criteria: Eligible persons are artisans aged 18 to 55, with Aadhaar/Voter ID etc; SHGs or group activity eligible; one person per family (for pedal/automatic machine) etc.
Non-duplication Clause: Persons who have already availed benefits of other Government schemes for the same/similar purpose are not eligible – declaration is required.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Skill Upgradation Training	Free 10 days training (20 candidates per batch)	Example: You attend a 10-day training on agarbatti manufacturing; cost borne under the scheme for up to 20 trainees in a batch.
Machinery & Raw Material Assistance	Assistance for automatic agarbatti-making machines, mixing machines and raw materials	Example: In a targeted cluster, about 50 automatic machines + 10 mixing machines are provided; raw material (e.g., powders, bamboo sticks) support is offered.
Beneficiary Contribution & Ownership Transfer	In some versions: subsidy part, remainder recovered; machine ownership transfer on repayment	Example: Under a related mission article: 25 % subsidy on machine cost, 75 % recovered from artisans monthly instalments; on full recovery machine ownership with artisan.

Eligibility Criteria

Who Can Apply:

Indian citizens aged between 18 to 55 years with Aadhaar/Voter ID and address proof.
One person per family for individual/pedal machine; two persons per family for group/automatic machine SHGs.
Artisans already involved or willing to enter the agarbatti manufacturing sector; preference given to those associated with KVI institutions.
SHGs or groups may apply under the automatic machine category, with all members subject to training.

Who Cannot Apply:

Persons who have already availed benefits under another government scheme for the same or similar purpose (manufacturing agarbatti/machines) will not be eligible
Applicants outside the age bracket (<18 or >55 years) or without valid identity/address proof.
Non-Indian citizens.
Applicants unwilling to undergo training or comply with scheme terms.

Documents Required

Aadhaar card or Voter ID (with photograph) – identity proof.
Address proof (ration card, utility bill, etc.).
Age proof (for verifying 18–55 years).
Bank account details of beneficiary.
Project proposal (for new unit or upgrade) describing machine type, raw material use, employment generation.
Declaration stating no previous benefit under same/similar scheme.
For SHG/group: registration certificate of SHG, list of members, authorised signatory letter.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Artisans or SHGs who prefer assisted application and follow-through.

Option 2: Government/KVIC Process

Monitor announcements from the KVIC State/Divisional Director inviting applications for the Agarbatti Making Project under GVY.
Attend awareness/training camps and submit the filled in application form along with project proposal to the designated office.
Selection of beneficiaries, training followed by supply of machines/materials.
Commence production and adhere to monitoring & reporting by KVIC.

Option 3: SHG/Group Application Route

SHGs or groups of artisans can apply collectively for the automatic machine category.
Submit group registration, list of members, proposed unit details; all members undergo training.
After selection, the group receives machines/raw material assistance; multi‐person employment and shared infrastructure.