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.