KGVYKVY

The scheme aims to increase productivity and wages of Khadi artisans, improve production infrastructure, boost employment and sales, revive traditional rural skills, modernize sales outlets, and promote marketing and exports.

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

• The applicant must be a Khadi artisan or Khadi Institution registered with KVIC or KVIB.
• The applicant must be between 18 to 55 years of age.
• The applicant must have a valid Aadhaar card or government-issued ID.
• One person per family is eligible under the scheme.
• The applicant should not have availed benefits from any other government scheme for the same purpose.
• Preference is given to SC/ST, women, unemployed youth, and BPL category applicants.
• The beneficiaries may be identified by KVIC, KVIBs, NGOs, DICs, FPOs, or Khadi Institutions.

Assistance provided under different components of Scheme:

Modified Market Development Assistance (MMDA):

• Subsidy @ 35% on Prime Cost for Cotton/Muslin, Wool and Polyvastra and @ 20% on Prime Cost for Silk Khadi

Interest Subsidy Eligibility Certificate Scheme (ISEC):

• Khadi Institution is required to pay only 4% interest rate. The difference between the actual Interest charged by the Bank and 4% is borne by the KVIC as “Interest Subsidy”.

Work-shed Scheme for Khadi Artisans:

• Individual workshed (20 Sq. mtrs): ₹1,20,000/- or 75% of the cost of workshed including toilet (90% for NER), whichever is less.
• Group workshed (10 Sq. mtrs per artisans): ₹80,000 or 75% of the cost of the workshed including toilet (90% for NER), whichever is less.

Strengthening Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure:

• Financial assistance for revival of khadi institution with ceiling limit of ₹15.00 lakh(Capital Expenditure +working fund).
• Financial assistance under Marketing Infrastructure for renovation of departmental sales outlets of KVIC /KVIB and institutional sales with the ceiling limit of ₹25.00 lakh.

Other Components:

• Centre of Excellence for Khadi
• Khadi Quality Assurance
• Marketing(Exhibition)
• Science & Technology (S&T)