Khadi Gramodyog Vikas Yojana

The Khadi Gramodyog Vikas Yojana is run by the Khadi & Village Industries Commission , under the Ministry of Micro, Small & Medium Enterprises . It is an umbrella scheme launched to strengthen both the khadi sector and village industries in rural India. The exact launch date as an umbrella scheme is not clearly mentioned in the sources, but the scheme is described in current documents as active and central sector. Its purpose is to increase productivity and wages of khadi artisans, provide infrastructure support, boost production and sales of khadi and village-industry products, and secure livelihoods in rural areas. The benefits include financial assistance for production, worksheds, training, marketing, modernisation and toolkits so that you as an MSME or artisan can set up or expand your unit, upgrade technology, reach markets and increase income.

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

Key Features

MMDA: This feature gives subsidy support based on the “prime cost” of khadi production so that prices can be market-oriented. For cotton/muslin, wool, polyvastra khadi, subsidy is 35% of prime cost; for silk khadi, 20%.
ISEC: Under this, bank loans for khadi institutions are given at a subsidised interest rate (e.g., 4%) with the remainder paid by KVIC, thus reducing the financial burden.
Workshed Scheme: Assistance is given to individual artisans or groups to construct or upgrade their workshed/ workspace. For example individual worksheds: up to ₹1,20,000 or 75% cost (90% for North-East). Group worksheds: up to ₹80,000 per artisan or 75% cost (90% for NER).
Infrastructure Modernisation & Marketing Support: This involves support for khadi institutions to modernise, for renovation of sales outlets, for strengthening marketing. For example, grants to renovate retail outlets, upgrade displays etc.
Village Industries/Toolkits & Modern Equipment Distribution: Under the “Gramodyog Vikas Yojana” part there is support for distribution of modern equipment/toolkits to rural micro-units.
Skill Development & Training: The scheme also emphasises training of artisans and skill upgrading so that they can adopt improved technologies, product innovations and diversify.
Marketing, Exports & Branding Support: The scheme supports market promotion, exhibitions, branding of khadi, quality assurance, and export promotion so that your unit’s products can access wider markets.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
MMDA	Subsidy of 35% on prime cost for cotton/muslin/wool/polyvastra khadi; 20% for silk khadi.	Example: If your khadi fabric prime cost is ₹100 before margins, you may get ₹35 subsidy or ₹20 under this component.
Workshed Scheme	Assistance up to ₹1,20,000 or 75% of cost (90% for NER)	Example: You are a khadi artisan and plan to build a workshed costing ₹1,50,000; you may get 75% of cost = ₹1,12,500 under this assistance.
Workshed Scheme	Up to ₹80,000 per artisan or 75% cost (90% for NER)	Example: A group of 10 artisans forms a unit, cost per artisan ₹1,00,000 -> you may get ₹80,000 per artisan assistance under this module.

Eligibility Criteria

Who Can Apply:

For Khadi/KVY component: Khadi Institutions registered with KVIC, State Khadi & Village Industries Boards , Khadi artisans.
For GVY component: Any Indian citizen identified by KVIC/NGOs/SDIs/FPOs etc.
Valid Aadhaar or other government identity card required.
Beneficiary from one family only.

Who Cannot Apply:

Persons who have already availed similar assistance for the same purpose under another government scheme.
Persons outside the age group specified for the direct beneficiary category.
Foreign citizens or person without valid identity/Aadhaar.
Non-registered institutions may be ineligible.

Documents Required

Aadhaar card or other government issued identity proof
Age proof
Address proof
Biometric/mobile number registered
Project report/Proposal
Bank account details of beneficiary
Certificate of registration

Application Process for the Scheme

Option 1: Apply with Bullit

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Option 2: Government Online/Offline Process

Visit the official website of KVIC or MSME and check for notification of KGVY/KVY/GVY.
Attend awareness/identification camp conducted by field office. Beneficiary may be shortlisted.
Submit application form along with required documents to the designated field office or via portal.
After verification, grant/subsidy and tool-kit/machinery assistance is disbursed as per guidelines.

Option 3: Through Bank/Financial Institution
For certain components like interest subsidy or loan component via approved banks, you may apply through bank/financial institution recognised under scheme. .