Khadi Gramodyog Vikas Yojana (KGVY)

What is Khadi Gramodyog Vikas Yojana?

Khadi Gramodyog Vikas Yojana (KGVY) is the umbrella scheme through which the Khadi and Village Industries Commission (KVIC), under the Ministry of Micro, Small and Medium Enterprises, funds India's khadi and village industry sector. Khadi Gramodyog Vikas Yojana merged the previously separate schemes, sub-schemes and components sitting under the Khadi Grant and Village Industries Grant heads into one scheme, and added new components.

According to the Ministry of MSME, Khadi Gramodyog Vikas Yojana was approved for continuation during 2021-22 to 2025-26, co-terminus with the 15th Finance Commission cycle, with a proposed outlay of Rs 6,769.78 crore, Rs 3,975.13 crore excluding administrative expenditure.

The scheme has two arms:

• Khadi Vikas Yojana (KVY): support to khadi spinning, weaving and khadi institutions.
• Gramodyog Vikas Yojana (GVY), support to village industries such as beekeeping, pottery, and other forest, mineral and agro-based industries.

What are the components of Khadi Gramodyog Vikas Yojana?

• Market Promotion and Development Assistance (MPDA): creates awareness, branding, marketing and distribution support for khadi and village industry products, and funds participation of khadi institutions and village industry units in domestic and international exhibitions, fairs and events.
• Interest Subsidy Eligibility Certificate (ISEC); enables khadi institutions to access bank working capital at a concessional interest rate, with KVIC bearing the difference.
• Workshed Scheme for Khadi Artisans; financial assistance to artisans to build or upgrade a workshed.
• Strengthening of weak khadi institutions and marketing infrastructure: grants to revive under-performing institutions and improve sales outlets.
• Khadi Science and Technology (Khadi S&T), product and process research.
• Honey Mission — a forest-based industry component launched by KVIC in 2017 that distributes bee boxes and bee colonies with training. KVIC has reported distribution of more than 2 lakh bee boxes to over 20,000 farmers and beekeepers.
• Kumhar Sashaktikaran Programme, a mineral-based industry component providing electric potter wheels, training and market linkage to potters.

Who is eligible for Khadi Gramodyog Vikas Yojana?

You can apply if:

• You are a registered khadi artisan. A spinner or weaver working with a KVIC-certified khadi institution; seeking workshed assistance, a toolkit or training.
• You are a KVIC-certified khadi institution or a registered khadi cooperative society seeking MPDA, ISEC or infrastructure support.
• You are a beekeeper or farmer willing to take up beekeeping under the Honey Mission component.
• You are a potter or a member of a potters' community applying under the Kumhar Sashaktikaran Programme.
• You belong to a village industry unit engaged in a KVIC-recognised agro, forest, mineral, polymer, hand-made paper, fibre or service industry.

You cannot apply if:

• You have no connection to khadi or a recognised village industry. General small businesses are not eligible under KGVY.
• Your institution is not certified by KVIC. Certification is a precondition for MPDA and ISEC, and an uncertified body is not eligible.
• You are seeking a direct cash grant unrelated to a component. Every KGVY benefit is tied to a specific activity, a workshed, a bee box, a potter wheel, an exhibition, or bank interest.
• You are looking for a new enterprise loan with margin money subsidy; that is PMEGP, a separate KVIC-implemented scheme, not KGVY.

What documents are required for Khadi Gramodyog Vikas Yojana?

How to apply for Khadi Gramodyog Vikas Yojana

1. Identify the component you qualify for, Workshed Scheme, MPDA, ISEC, Honey Mission or Kumhar Sashaktikaran. Each has its own form and sanctioning route.
2. Approach the KVIC-certified khadi institution you are attached to, or your KVIC state or divisional office, and obtain the application form for that component.
3. For online components such as MDA claims, register on kviconline.gov.in and file the claim through the relevant module.
4. Submit the form with Aadhaar, bank passbook, artisan or institution proof, and land documents where a workshed is proposed.
5. Allow field verification by the KVIC officer, which precedes sanction for workshed, bee box and potter wheel components.
6. Receive the sanctioned assistance in your bank account, or the equipment and training where the component is delivered in kind, and retain the utilisation records.

How much benefit does Khadi Gramodyog Vikas Yojana provide?

• Workshed Scheme: Rs 1,20,000 or 75% of the workshed cost, whichever is less, for an individual artisan. The share rises to 90% for special category artisans and for the North Eastern Region.
• ISEC: interest subsidy on bank working capital for khadi institutions, with KVIC bearing the interest above the concessional rate fixed under the scheme.
• MPDA: the cost of exhibitions, branding, publicity and marketing infrastructure is borne by KVIC rather than paid as cash to the institution.
• Honey Mission and Kumhar Sashaktikaran: benefits are delivered in kind; bee boxes with colonies, electric potter wheels; along with training.

Component-level rates are revised by KVIC from time to time. Confirm the current rate and ceiling at your KVIC divisional office before you begin construction or place an equipment order.

Which schemes are often confused with Khadi Gramodyog Vikas Yojana?

• PMEGP is a separate KVIC-implemented scheme that gives a margin money subsidy on a bank loan to set up a new micro enterprise. KGVY does not fund new enterprise creation through bank credit.
• SFURTI funds traditional industry clusters through common facility centres and is implemented by the Ministry of MSME, not through the KGVY heads.
• Coir Vikas Yojana covers the coir sector under the Coir Board, and is outside KVIC's khadi and village industry mandate.

Help and contact for Khadi Gramodyog Vikas Yojana

• KVIC: kvic.gov.in: Gramodaya, 3 Irla Road, Vile Parle (West), Mumbai
• Online claim modules: kviconline.gov.in
• State and divisional KVIC offices handle applications, verification and sanction
• MSME/Udyam helpline: 1800-180-6763

No agent fee is payable for a KGVY application. Applications are received directly by KVIC offices and certified khadi institutions.

How to check your application status

Khadi Gramodyog Vikas Yojana does not run a single unified online tracking portal the way a centrally sponsored loan scheme does, because each component (Workshed Scheme, MPDA, ISEC, Honey Mission, Kumhar Sashaktikaran) is sanctioned through a different route. Use the channel that matches the component you applied under.

• Through your khadi institution: if you applied as an individual artisan through a KVIC-certified khadi institution, the institution holds your file and is the first point of contact. Ask the institution's secretary or accounts office for the status of your workshed, toolkit or training application; institutions typically get sanction communication from the KVIC divisional office before the artisan does.
• At the KVIC state or divisional office: if you applied directly, visit or call the KVIC state/divisional office where you submitted the form. Quote the application date, the component name and your artisan ID or institution membership number. Field staff can confirm whether the file is still under verification, has been forwarded for sanction, or has been sanctioned and is pending disbursal.
• Online claim modules: components filed through kviconline.gov.in, such as MDA (marketing development assistance) claims, can be tracked by logging back into the portal with the credentials used at filing; the claim's status (submitted, under processing, sanctioned, disbursed) shows against the claim reference number.
• Field verification stage: for the Workshed Scheme, Honey Mission and Kumhar Sashaktikaran, a KVIC officer must physically verify the artisan, site or beneficiary before sanction. If your application has been pending for several weeks with no update, ask specifically whether field verification has been completed, since this step is the most common bottleneck.
• MSME/Udyam helpline: call 1800-180-6763 if the institution or divisional office is unresponsive, or to get a referral to the correct KVIC office for your district.
• Bank credit confirmation: once assistance is sanctioned, workshed and interest subsidy amounts are transferred to the beneficiary's or institution's bank account. Check your passbook or bank statement in parallel with following up at the KVIC office, since disbursal can sometimes reach the account a few days before the office updates its own file status.

Keep a copy of your acknowledgement or receipt from the institution or KVIC office; without a reference number, follow-up calls take longer because staff have to search manually through physical files.

Common reasons for rejection

• Applicant has no verifiable link to khadi or a recognised village industry. KGVY funds only registered khadi artisans, KVIC-certified institutions, and specific village-industry activities (beekeeping under Honey Mission, pottery under Kumhar Sashaktikaran, and other KVIC-recognised agro, forest or mineral-based units). A general small business or trader applying without any khadi or village-industry connection is turned down at the first screening. Fix: confirm your activity falls under a recognised KGVY component before applying, and get it endorsed by a KVIC-certified institution where the component requires one.

• Institution is not KVIC-certified. MPDA, ISEC and infrastructure-strengthening assistance are available only to institutions holding valid KVIC certification. An application from an uncertified or lapsed-certification institution is rejected regardless of how genuine its khadi activity is. Fix: renew or obtain KVIC certification first; certification status can be confirmed at the KVIC divisional office before the institution applies for any component grant.

• Missing or mismatched identity and bank documents. Aadhaar details, artisan ID, or bank passbook details that do not match across the application commonly stall or reject a file, since assistance is credited directly to the beneficiary's bank account. Fix: check that the name and details on Aadhaar, the artisan/institution proof, and the bank passbook are consistent before submission.

• No proof of site ownership or right to build, for workshed claims. The Workshed Scheme requires the artisan to show land or site documents establishing ownership or a legal right to construct on the land. An application without this proof, or with a disputed title, is not sanctioned. Fix: arrange a clear ownership document, lease deed, or a no-objection certificate from the landowner before filing a workshed claim.

• Field verification failure. For workshed, Honey Mission and Kumhar Sashaktikaran, a KVIC officer must physically verify the applicant, site or activity. Applications are rejected or shelved when the artisan is not found at the stated address, the site does not match what was declared, or the applicant is not actually engaged in the claimed khadi or village-industry activity. Fix: be available and reachable when verification is scheduled, and ensure the site and activity match exactly what was declared in the form.

• Claiming a benefit outside KGVY's scope. Requests for a new-enterprise loan with margin-money subsidy, or for a direct cash grant not tied to a specific component, are rejected because they belong to a different scheme (PMEGP for new enterprise loans) or are simply not a form of assistance KGVY offers. Fix: check which KVIC scheme actually covers the assistance you want; KGVY strengthens existing khadi/village-industry activity, it does not fund fresh business start-up capital.

• Special-category claim without supporting certificate. Applicants claiming the enhanced 90% workshed share for special-category status or North Eastern Region location, but not attaching the relevant caste or special-category certificate, are sanctioned only at the standard 75% rate, or the claim is sent back for the missing document. Fix: attach the caste or special-category certificate at the time of filing if you intend to claim the higher share, rather than after initial sanction.