Sarkari Yojana

Mission Solar Charkha

Quick Summary: Mission Solar Charkha is an MSME pilot scheme that funds Solar Charkha Clusters of 200-2000+ artisans, covering up to ₹9.6 crore per cluster for solar charkhas, looms, worksheds, solar grids, and working capital support. Eligible promoters include established KVIs, SPVs/societies/trusts, and first-time entrants committed to rural upliftment.

About Mission Solar Charkha

“Mission Solar Charkha” is a pilot initiative under the Ministry of MSME to build solar-powered livelihoods in rural areas. It centres on establishing Solar Charkha Clusters, each covering a focal village and neighbouring villages within an 8–10 km radius, with roughly 200 to 2042 artisans — spinners, weavers, and other skilled workers — per cluster. Using low-cost, eco-friendly technology, the project aims to create sustainable employment. New cluster rollouts are currently paused pending evaluation of the pilot projects.

Scheme Overview

Government Level

Central Government

Ministry

Ministry Of Micro, Small and Medium Enterprises

Implementing Agency

Ministry Of Micro, Small & Medium Enterprises, Government Of India

Eligible Entity

Business Entity, Individual

Scheme Details

Eligibility

Eligibility Requirements

To qualify for Mission Solar Charkha, applicants must satisfy the following conditions:

Criteria for selection of Promoter Agency/SPV: A. Existing Khadi and Village Industry Institutions (KVIs) may apply to set up such a Cluster, subject to meeting these parameters:

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The KVI must have a positive balance sheet…

The KVI must have a positive balance sheet and assets in its favour.

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The KVI must have an artisan base of…

The KVI must have an artisan base of at least 200.

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The KVI must have recorded sales turnover of…

The KVI must have recorded sales turnover of at least ₹1.00 Crore in each of the preceding three financial years.

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The number of new artisans must have grown…

The number of new artisans must have grown over the last three years. B. Other institutions — SPVs, Societies, Trusts, Section 8 Companies, or LLPs registered under their respective statutes, including the Companies Act, 2013 — may also apply to set up a new Solar Charkha Cluster, meeting the following criteria:

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A clear vision and mission

A clear vision and mission.

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A Board and governing structure with adequate experience

A Board and governing structure with adequate experience.

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A proper Management Information System (MIS)

A proper Management Information System (MIS).

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Financial resources, both equity and debt

Financial resources, both equity and debt.

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Sound financial performance — profitability and IRR —…

Sound financial performance — profitability and IRR — over the last three years. C. First-time entrants wishing to join the village industry movement through solar charkha clusters may apply for a new cluster, meeting the following criteria:

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Strong commitment to social and rural upliftment

Strong commitment to social and rural upliftment.

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Funding commitment from Scheduled Commercial Banks/NBFCs/Venture Capital Funds/Private…

Funding commitment from Scheduled Commercial Banks/NBFCs/Venture Capital Funds/Private Equity funds.

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A proper Management Information System (MIS)

A proper Management Information System (MIS).

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Any other criteria the governing council approves

Any other criteria the governing council approves. Promoter will fulfill the following criteria at the time of application:

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The promoter conducts a baseline survey, identifying at…

The promoter conducts a baseline survey, identifying at least 200 members with Aadhaar numbers, at least 50% of whom must be women.

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The promoter provides between 20,000 sq

The promoter provides between 20,000 sq. feet and 2 acres of land, either owned or under a long-term lease of at least 15 years, arranging the land and covering all related expenses.

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The small promoter agency deposits at least 15%…

The small promoter agency deposits at least 15% of the working capital requirement, or at least three months' projected working capital, into a dedicated account, only after the SSC finalises its selection and before the first fund release.

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Before the first instalment of funds is released,…

Before the first instalment of funds is released, the promoter agency forms a Special Purpose Vehicle (SPV) — potentially a Section-8 Company or a Producer company under the Companies Act, 2013 — to build the integrated model of solar charkhas, solar looms, sewing machines, and similar equipment, centred on one focal village.

Applicants must meet all of the above conditions to be considered eligible for this scheme.
Benefits

Benefits Provided

Mission Solar Charkha provides the following benefits to eligible applicants:

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Maximum Subsidy per Cluster:

Financial assistance of up to ₹9.599 crore for setting up one Solar Charkha Cluster. Capital subsidy for individual and for Special Purpose Vehicle (SPV):

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2000 Solar Charkhas, priced at a maximum of…

2000 Solar Charkhas, priced at a maximum of ₹45,000/- each with a subsidy of ₹15,750/- each, work out to a cumulative subsidy of ₹3.15 crore for 1000 spinners.

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One unit of two Solar Charkhas produces roughly…

One unit of two Solar Charkhas produces roughly 2.0 kg of yarn a day, so 2000 charkhas would yield about 2.0 tons; converting this yarn into fabric needs 500 Solar Looms, priced at a maximum of ₹1,10,000/- each with a 35% subsidy of Rs.38,500/- each, giving a cumulative subsidy of ₹1.93 crore for 500 weavers.

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Constructing a workshed of at least 20,000 sq.ft…

Constructing a workshed of at least 20,000 sq.ft carries a 100% subsidy, capped at ₹1.20 crore per cluster, for the SPV.

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A 50 KW Solar Grid carries a 100%…

A 50 KW Solar Grid carries a 100% subsidy, capped at ₹0.40 crore per cluster, for the SPV.

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A one-time Capital Cost Subsidy of 35% for…

A one-time Capital Cost Subsidy of 35% for the SPV, capped at ₹0.75 crore per Cluster, covers purchasing twisting, dyeing, and stitching machines (500 units), making the unit self-sustaining and enabling value addition. Interest subvention for Working Capital:

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An 8% interest subvention ceiling applies to working…

An 8% interest subvention ceiling applies to working capital, regardless of the rate Banks/Financial Institutions actually charge, for six months; recurring working capital costs at this 8% subvention rate come to ₹1.584 crore per cluster for six months, roving cost and spinner/weaver wages included. Capacity building:

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The scheme funds courses for spinners, weavers, and…

The scheme funds courses for spinners, weavers, and others in the garmenting unit, at a total cost of ₹0.595 cr per cluster over two years.

Benefit amounts and conditions may vary by category — refer to the official scheme guidelines for exact figures applicable to your case.
Documents Required

Documents Required

Applicants should keep the following documents ready before starting the application:

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The organization's legal status (enclose registration certificate) and…

The organization's legal status (enclose registration certificate) and whether it is a National or International body

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Establishment date and a summary of registered objectives

Establishment date and a summary of registered objectives

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List of the Governing Body / Board of…

List of the Governing Body / Board of Directors

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Details of the areas of activity

Details of the areas of activity

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Major regular donors, if any

Major regular donors, if any

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List of organizations with which formal MoUs/linkages exist

List of organizations with which formal MoUs/linkages exist

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Date of the last Annual General Meeting (attach…

Date of the last Annual General Meeting (attach the meeting minutes)

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Annual audited statements and IT returns for the…

Annual audited statements and IT returns for the last 3 years

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A brief CV/bio-data of a person with domain…

A brief CV/bio-data of a person with domain expertise and a strong conceptual grasp of, and interest in, innovation and entrepreneurship

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Awards & Recognition over the last 5 years,…

Awards & Recognition over the last 5 years, detailing significant honours won

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Details of any other notable innovation and entrepreneurship…

Details of any other notable innovation and entrepreneurship activities

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Details of the institution's strength and readiness to…

Details of the institution's strength and readiness to host a Cluster

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A year-wise work plan for three years (a…

A year-wise work plan for three years (a separate time-linked activity chart alongside the detailed work plan

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Any other documents that may be required

Any other documents that may be required

Ensure all documents are valid and, where required, duly attested before submitting your application.

How to Apply

Online Application

Applicants can apply for Mission Solar Charkha through the online application process outlined below.

1️⃣

The applicant/Promoter Agency may visit the Official Website…

The applicant/Promoter Agency may visit the Official Website of Mission Solar Charkha (MSC) to apply online.

2️⃣

Registered applicants can apply by clicking 'Apply Online',…

Registered applicants can apply by clicking 'Apply Online', if not yet registered, click 'New Registration' and fill in all mandatory details.

3️⃣

Once registered, log in to apply for the…

Once registered, log in to apply for the scheme.

4️⃣

Fill in all mandatory fields in the application…

Fill in all mandatory fields in the application form and submit it.

Ensure all required documents are ready before starting the application process.

Offline Application

Applicants can apply for Mission Solar Charkha through the offline application process outlined below.

Interested applicants must send the complete proposal (one hard copy and one soft copy), in the prescribed proforma at Annexure-III, with the necessary enclosures and endorsement from the Head of the Institution/Agency/Trust/Company seeking to anchor cluster development, to the following address: The Chief Executive Officer, Khadi Village & Industries Commission (KVIC), Gramodaya 3, Irla Road, Vile Parle (West), Mumbai - 400056 Telephone (022-26711577) Telefax: (022-26718289), E-mail: ceo.kvic@gov.in Appraisal and Approval:

1️⃣

Proposals for cluster development are appraised on the…

Proposals for cluster development are appraised on the entity's track record, merit, and cluster-development strategy.

2️⃣

The Scheme Steering Committee carries out the appraisal…

The Scheme Steering Committee carries out the appraisal and grants final approval.

3️⃣

The SSC monitors performance on both quantitative and…

The SSC monitors performance on both quantitative and qualitative fronts; where progress falls significantly short, the Promoter Agency may be replaced, and support may continue with a new agency subject to SSC approval.

Ensure all required documents are ready before starting the application process.

Official Application & Website

Verify the latest eligibility, dates and instructions before applying.

Official Sources & References