Handmade Paper and Fiber related activities under Gramodyog Vikas Yojana (GVY)

The Handmade Paper & Fibre component operates under the Gramodyog Vikas Yojana , which is implemented by the Khadi and Village Industries Commission under the Ministry of MSME, Government of India. GVY was notified under the umbrella scheme Khadi and Gramodyog Vikas Yojana in 2019, combining multiple village-industry support initiatives. The purpose of this scheme is to help rural artisans, micro-entrepreneurs, SHGs, and traditional craft workers to adopt or expand Handmade Paper and Fibre-based activities through skill training, distribution of tools and machinery, technology upgrading, and market support. This helps you as an MSME or artisan improve production capacity, create sustainable income, and build a commercially viable rural industry.

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

Key Features

Skill Development & Technical Training: KVIC conducts structured training programmes for artisans in paper making, paper-conversion activities , fibre extraction, natural fibre craft, and value-added products. The training focuses on improving technical skills and enabling you to start or expand production.
Provision of Tools, Machinery & Equipment: After training, eligible artisans or groups receive essential tool-kits or small machinery. GVY’s guidelines authorise KVIC to supply these based on assessment of need, project type, and available budget.
Technology Upgradation: The scheme encourages adoption of improved paper-making and fibre-processing technologies. This helps improve productivity, consistency, and market competitiveness.
Marketing & Branding Support: GVY supports artisans with access to exhibitions, craft fairs, product promotion campaigns, and awareness events that help Handmade Paper & Fibre products find wider domestic and export markets.
Priority for Marginalised Groups: SC/ST, BPL families, women, unemployed youth, and special groups receive priority during selection.
Support for New & Existing Units: Both newly-trained artisans and already-existing small units can receive support for tool-kits, training, and market exposure.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Training costs for group of artisans	For example: Training cost of ₹ 63,000 for a group of 10 artisans	If 10 artisans join the scheme for paper-conversion training, GVY will cover ₹ 63,000 - roughly ₹ 6,300 per artisan - for the training program.
Machinery / Tool-kit supply	For the same group, machinery cost of ₹ 2,00,000 under paper-conversion / fibre industry vertical.	Post training, each artisan receives tools/machines - e.g. paper-cutting machine, screen printing set - worth ₹ 2 lakh for the group, enabling production setup.
Subsidy / Contribution pattern	For non-NE states: beneficiary contributes 10–20%, KVIC covers 80–90% (0% for BPL in some cases) for machines/tools.	Suppose you belong to SC/ST and not BPL: you may need to contribute 10% of the kit/machinery cost (say ₹ 20,000) while GVY / KVIC provides the remaining 90%.

Eligibility Criteria

Who Can Apply:

Indian citizen aged between 18-55 years.
Valid Aadhaar or other government identity proof with address.
Preference to persons from SC/ST/OBC/BPL categories, women, youth, marginalised groups, surrendered extremists, widows etc.
For group model: SHGs, artisan groups, or individuals willing to form micro-units in handmade paper & fibre sector.
Beneficiaries may be identified by KVIC, NGOs, SHGs, State boards and other implementing bodies.

Who Cannot Apply:

Persons who have already availed similar assistance under another government scheme for the same purpose/activity are generally ineligible.
Non-Indian citizens.
Persons outside the age group unless specified otherwise.
Persons without valid identity/address proof.
Applicants unwilling to undergo training or use the machines & tools for intended purpose.

Documents Required

Aadhaar card or valid government identity proof with photograph.
Age proof .
Address proof .
Recent passport-size photographs of applicant.
Bank account details .
Self-declaration that applicant has not availed similar benefit under another scheme for the same activity.
Project/venture plan detailing proposed activity – e.g., handmade paper bags, fibre articles, raw‐material source, production plan, employment generation.
For SHG/group: SHG registration certificate, list of members, resolution authorising group-application.
Training acknowledgement and commitment to use machines/tools for intended purpose

Application Process for the Scheme

Option 1: Apply with Bullit

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: Rural artisans, SHGs or youth who prefer guided support and complete end-to-end assistance.

Option 2: Government/KVIC Process

Keep track of announcements or calls for applications from your local KVIC field office/state directorate for the Handmade Paper & Fibre component of GVY.
Attend awareness camp/meeting , and obtain the official application form.
Submit the filled application form along with required documents to the designated KVIC/State board/implementing office.
If selected, attend the training programme of the specified duration (6–12 days typically).
Upon successful completion of training, you or your group receive tool-kits/machinery as per norms.
Commence production, maintain records, participate in marketing linkages and comply with monitoring/hand-holding by implementing agency.

Option 3: SHG/Group Application Route

If you are part of a Self-Help Group or artisan group, you can apply collectively for a batch under the component.
The group must submit registration, list of members, and project intent along with other required documents.
After selection and training, share the machinery/tool kit among members and begin group production of handmade paper/fibre articles.