Modified Market Development Assistance Scheme

The applicant must be a Khadi Institution

The applicant must be a Khadi Institution.

The applicant must be affiliated with, or registered…

The applicant must be affiliated with, or registered under, the Khadi and Village Industries Commission (KVIC), a State/UT Khadi and Village Industries Board (KVIB), or a State/UT KVIB unit.

The applicant must hold a valid Khadi/Polyvastra Certificate

The applicant must hold a valid Khadi/Polyvastra Certificate.

The applicant must hold a valid Khadi Mark…

The applicant must hold a valid Khadi Mark Certificate.

KVIC must have duly approved the applicant's annual…

KVIC must have duly approved the applicant's annual budget.

To count as a "Producing Institution" for Market…

To count as a "Producing Institution" for Market Development Assistance purposes, the applicant must be engaged in Khadi production.

To count as a "Selling Institution" for Market…

To count as a "Selling Institution" for Market Development Assistance purposes, the applicant must sell Khadi bought from producing institutions.

To count as a "Composite Institution," the applicant…

To count as a "Composite Institution," the applicant must be engaged in both producing and selling Khadi.

34% of the total MMDA amount

34% of the total MMDA amount.

These funds go toward procuring tools and equipment,…

These funds go toward procuring tools and equipment, upgrading technology, hiring designers and consultants for new designs, adding value to post-fabric processes, and engaging technicians to maintain Charkhas, looms, and other equipment. Selling Institutions:

17% of the total MMDA amount

17% of the total MMDA amount.

These funds support sales promotion activities such as…

These funds support sales promotion activities such as computerisation, bar-coding, billing, debit/credit card swipe machines, accounts, sales outlet renovation, mobile sales vans, participation in domestic and international exhibitions, sales discounts, and building sales staff capacity. Artisans (Spinners & Weavers): 35% of the total MMDA amount, paid out as an incentive or bonus through their Aadhaar-seeded bank or post office accounts. Karyakartas:

14% of the total MMDA amount, paid out…

14% of the total MMDA amount, paid out as an incentive or bonus through their Aadhaar-seeded bank or post office accounts.

Karyakartas cover those involved in production and post-production…

Karyakartas cover those involved in production and post-production work — salesmen, saleswomen, cashiers, accountants, marketing executives, helpers, tailoring staff, store-keepers, and godown-keepers.

This also includes artisans in pre-processing activities like…

This also includes artisans in pre-processing activities like spinning and weaving, and Khadi/Polyvastra processing such as dyeing, who work at Khadi Institutions' production centres. Composite Institutions: Khadi institutions engaged in both production and selling get 51% of the MMDA amount, for both product development and market development purposes. Distribution of MMDA (for Silk Khadi)

Producing Institutions:

40% of the total MMDA amount.- Selling Institutions: 20% of the total MMDA amount.- Artisans (Reelers, Twisters, Winders & Weavers): 30% of the total MMDA amount, paid out as an incentive or bonus through their Aadhaar-seeded bank or post office accounts.- Karyakartas: 10% of the total MMDA amount, paid out as an incentive or bonus, capped at ₹10,000/- per quarter per Karyakartha, whichever is lower.- Composite Institutions: Khadi institutions engaged in both production and selling get 60% of the MMDA amount. Government Supplies (Rate Contract):

Khadi and Polyvastra products made for Government supply…

Khadi and Polyvastra products made for Government supply under DGS&D's Rate Contract (RC) do not qualify for the full MMDA.

However, artisans and Karyakartas of Khadi Institutions engaged…

However, artisans and Karyakartas of Khadi Institutions engaged in production and supply under Government supply/Rate Contract remain eligible for an MMDA incentive of 17.15% on prime cost (calculated as 35 ÷ 100 × 49). Disbursement Conditions:

MMDA is disbursed through an online portal via…

MMDA is disbursed through an online portal via Direct Benefit Transfer (DBT), with KVIC paying artisans (spinners, weavers, and Karyakartas) directly into their Aadhaar-linked bank or post office accounts.

Funds are released quarterly, based on actual claims…

Funds are released quarterly, based on actual claims settled in the previous quarter.

The Directorate of Khadi scrutinises claims and recommends…

The Directorate of Khadi scrutinises claims and recommends them to the Directorate of Accounts within 7 working days, which then processes and releases funds to the institution's and artisans' bank accounts within 5 working days.

MMDA funds for specific purposes such as modernisation,…

MMDA funds for specific purposes such as modernisation, renovation, and R&D may be used up to two years from the date of actual receipt, with specific sanction from KVIC. Conditions for Availing the Benefits:

Separate Bank Account:

Institutions must keep a separate bank account for MMDA funds, subject to KVIC verification.- Utilization Certificates: Khadi Institutions availing MMDA must furnish annual utilization certificates from a registered Chartered Accountant (CA), plus quarterly utilization certificates.- Artisan Payments: The artisans' share of the total MMDA amount must reach them as an incentive or 'bonus' via their bank or post office accounts, on top of normal earnings — such incentives/bonuses from the MMDA grant should not be folded into Khadi's cost.- Transfer to Selling Institutions: Producing institutions transferring Khadi wholesale must pass on the relevant share (17% for Cotton/Wool/Polyvastra or 20% for Silk Khadi) of the MMDA amount to purchasing/selling institutions via wholesale invoices.- Timely Claims: Claims not filed within 15 days of the quarter's end are forfeited and returned to the institutions.- Aadhaar Linkage: KVIC must ensure all artisans have 100% Aadhaar-linked bank/post office accounts, with MMDA funds routed only through these.- Target Achievement: KVIC verifies that institution-wise production and sales targets are met and stock holding reduced.- Recovery of Dues: Recovering dues from MMDA claims cannot exceed 75% of the eligible amount for institutions with a combined production target (Khadi + Polyvastra) up to ₹1,00,00,000/- per annum.

Detailed claims in the prescribed format (the MMDA…

Detailed claims in the prescribed format (the MMDA guidelines specifically reference Annexure-III and Annexure-IV for utilization statements, part of the claim submission).

Quarterly claims for Modified Market Development Assistance on…

Quarterly claims for Modified Market Development Assistance on Prime Cost, for production achieved in the preceding quarter. At Benefit Disbursal / Post-Disbursal / Monitoring Stage

Quarterly Utilization Statement of the Modified Market Development…

Quarterly Utilization Statement of the Modified Market Development Assistance Grant (Annexure-III format).

Annual Utilization Certificate from a Registered Chartered Accountant…

Annual Utilization Certificate from a Registered Chartered Accountant (CA), clearly stating the CA's registration number and address (Annexure-IV format).

Receipt confirming remittance of funds to the State…

Receipt confirming remittance of funds to the State Level Artisans Welfare Fund (required under earlier MDA guidelines to ensure artisan welfare measures).

A certificate from the Producing Institution confirming release…

A certificate from the Producing Institution confirming release of the Modified Market Development Assistance share to spinners, weavers, and selling institutions for the previous quarter.

Records verifying payments made to each artisan, preferably…

Records verifying payments made to each artisan, preferably through a bank or post office account (for KVIC verification).

An annual, centre-wise stock-taking statement, signed by authorised…

An annual, centre-wise stock-taking statement, signed by authorised stock-taking personnel and office bearers of the institution (submitted right after the financial year ends).

An audited balance sheet certified by the Chartered…

An audited balance sheet certified by the Chartered Accountant (to confirm the closing stock position).