The “Mission Solar Charkha” is a pilot project initiated by the Ministry of Micro, Small & Medium Enterprises, Government of India, aimed at setting up Solar Charkha Clusters in rural areas. Under this scheme, a focal village and its surrounding villages (within an 8 to 10 km radius) form a cluster, which can include between 200 to 2042 beneficiaries—such as spinners, weavers, stitchers, and other skilled artisans. Each spinner is provided with two charkhas (each with 10 spindles), and a fully operational cluster is expected to house about 1,000 charkhas. A cluster operating at full capacity will offer direct employment to up to 2042 artisans.
The Government has approved the establishment of 50 such clusters with a budget of ₹550 crores for 2018-19 and 2019-20, with an anticipated direct employment impact of nearly one lakh persons across these clusters.
Objectives:
- To ensure inclusive growth by generating employment—especially for women and youth—and promoting sustainable rural development.
- To boost the rural economy and curb migration from rural to urban areas.
- To leverage low-cost, innovative technologies and processes for long-term sustenance.
Note: As per MSME directions, further Mission Solar Charkha projects will be undertaken only after assessing the outcomes of the 9 pilot projects, and no new proposals will be entertained until then.
Benefits
The scheme offers significant financial and project interventions, divided into three sub-components:
A. Capital Subsidy:
-
Solar Charkhas for Spinners:
Provision of 2000 Solar Charkhas at a maximum price of ₹45,000 per unit with a subsidy of ₹15,750 per charkha, cumulatively amounting to approximately ₹3.15 crores for 1000 spinners. -
Solar Looms for Weavers:
Conversion of yarn (produced by the Solar Charkhas) into fabric using 500 Solar Looms, priced at ₹1,10,000 per loom, with a 35% subsidy (₹38,500 per loom), leading to a cumulative subsidy of around ₹1.93 crores. -
Work Shed Construction:
100% subsidy for the construction of a work shed (minimum 20,000 sq. feet) at up to ₹1.20 crore per cluster for the Special Purpose Vehicle (SPV). -
Solar Grid Installation:
100% subsidy for setting up a 50 KW Solar Grid at a maximum rate of ₹0.40 crore per cluster for the SPV. -
Additional Capital Cost Subsidy:
A one-time subsidy of 35% for purchasing twisting, dying, and stitching machines (500 units) to support value addition and self-sustainability, amounting to a maximum of ₹0.75 crore per cluster.
B. Interest Subvention for Working Capital:
- Provision for an 8% interest subvention on working capital for a period of six months.
- The recurring working capital cost for six months is estimated at ₹1.584 crores per cluster, covering expenses like roving costs and wages for spinners and weavers.
C. Capacity Building:
- The scheme includes capacity building initiatives for spinners, weavers, and other personnel involved in the garmenting unit, with a total cost of ₹0.595 crore per cluster over a two-year period.
Eligibility
Criteria for Selection of Promoter Agency/SPV:
A. Existing Khadi and Village Industry Institution (KVI):
- Must have a positive balance sheet and asset base.
- Should have an artisan base of no fewer than 200.
- Must record a sales turnover of at least ₹1.00 crore in each of the past three financial years.
- Should demonstrate an increasing number of new artisans over the last three years.
B. Other Institutions (SPV, Society, Trust, Section 8 Company, or LLP):
- Must have a clear vision and mission, along with an experienced board/governing structure.
- Should have a robust Management Information System (MIS) and sufficient financial resources (both equity and debt).
- Demonstrated financial performance (profitability and IRR) over the past three years is required.
C. First-Time Applicants:
- Must show the highest commitment to social and rural upliftment.
- Should have funding commitments from Scheduled Commercial Banks, NBFCs, Venture Capital Funds, or Private Equity Funds.
- Must maintain a proper MIS and fulfill any additional criteria approved by the governing council.
Promoter Requirements:
- A baseline survey must be conducted to identify at least 200 members (with Aadhaar numbers), with a minimum of 50% being women.
- The promoter must provide land (minimum 20,000 sq. feet up to 2 acres) either owned or under a long-term lease (minimum of 15 years), and bear all related expenditures.
- A small promoter agency is required to deposit at least 15% of the working capital requirement (or three months’ projected amount) into a dedicated account before the release of the first fund.
- Formation of an SPV (preferably a Section-8 Company or Producer Company under the Companies Act, 2013) is mandatory prior to fund disbursement.
Application Process
Online / Offline
-
Accessing the Portal:
Visit the official Mission Solar Charkha website: https://kviconline.gov.in/msc/view1.jsp. -
Registration:
- For new applicants: Click on “New Registration” and fill in all mandatory details.
- For registered applicants: Click on “Apply Online” after logging in.
-
Form Submission:
Complete the application form by providing all required details and then submit the form online.
Documents Required
-
Legal Documents:
Certificate of registration and details regarding the legal status of the organization (national/international). -
Organizational Details:
Establishment date, registered objectives, list of governing body members, and details of areas of activity. -
Financial Information:
Annual audited statements and IT returns for the last 3 years, along with details of major regular donors (if any). -
Experience and Capacity:
A brief CV or bio-data of a key person with domain expertise, awards & recognitions, and a detailed work plan (year-wise for three years) along with a time-linked activity chart. -
Additional Documentation:
Any other documents as specified by the scheme guidelines, including details of formal MoUs/linkages, and evidence of readiness to host a cluster.
Frequently Asked Questions
-
What is the “Mission Solar Charkha”?
It is a pilot project aimed at establishing Solar Charkha Clusters in rural areas to boost employment and support sustainable development through renewable energy-enabled charkha technology. -
Which ministry has launched ‘Mission Solar Charkha (MSC)’?
The scheme is launched by the Ministry of Micro, Small & Medium Enterprises, Government of India. -
What are the objectives of the scheme?
The scheme aims to generate employment (with a focus on women and youth), boost the rural economy, curb rural-urban migration, and leverage innovative, low-cost technologies for sustainable development. -
What is the maximum subsidy for one cluster of Solar Charkha?
The maximum subsidy per cluster is approximately ₹9.599 crores, covering various interventions from capital subsidy to capacity building. -
Who can apply under the scheme?
Eligible applicants include existing Khadi and Village Industry Institutions (KVI), other institutions (such as SPVs, societies, trusts, Section-8 companies, or LLPs), and first-timers committed to the village industry movement. -
What are the eligibility criteria for setting up a cluster by existing KVI?
The KVI must have a positive balance sheet, at least 200 artisans, a minimum sales turnover of ₹1.00 crore in each of the last three financial years, and evidence of increasing artisan numbers. -
What are the eligibility criteria for other institutions?
They should possess a strong vision, an experienced board, a robust MIS, and a proven track record of financial performance over the last three years. -
What is the role of the baseline survey in the scheme?
The survey identifies at least 200 eligible members (with Aadhaar numbers), ensuring that at least 50% are women, to build a robust beneficiary base for the cluster. -
What happens if the promoter does not fulfill the working capital deposit requirement?
Failure to deposit at least 15% of the working capital requirement will impede fund disbursement, as it is a mandatory pre-condition before the release of the first installment. -
How can an applicant apply under the scheme?
Applications can be submitted online through the official Mission Solar Charkha portal, with necessary details and documentation, or via offline methods as specified in the guidelines.