Solar Charkha Mission

Written By Gautham Krishna   | Published on April 23, 2019

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Name of the Service Solar Charkha Mission
Department Ministry of Micro Small & Medium Enterprises
Online Application Link Click Here
Application Type Online/Offline

Ministry of MSME has launched Mission Solar Charkha for the production of khadi through solar-powered charkhas. The spinners would be trained in operating the charkhas.

Objectives of Solar Charkha Mission

The objectives of the Scheme are as follows:

  • To ensure inclusive growth by the generation of employment, especially for women and youth, and sustainable development through solar charkha clusters in rural areas.

  • To boost the rural economy and help in arresting migration from rural to urban areas.

  • To leverage low-cost, innovative technologies and processes for sustenance.

Features of Solar Charkha Mission

  • The scheme envisages the setting up of Solar Charkha Clusters which would mean a focal village and other surrounding villages in a radius of 8 to 10 kilometres. Further, such a cluster will have 200 to 2042 beneficiaries (spinners, weavers, stitches and other skilled artisans).

  • Each spinner will be given two charkhas of 10 spindles each. On average, it is considered that such a cluster will have about 1000 charkhas. A cluster with full capacity will provide direct employment to 2042 artisans.

  • The government of India has accorded approval to set up 50 such clusters with a budget of 550 Crore of 2018-19 and 2019-20.

  • The Scheme is envisaged to generate direct employment nearly to one lakh persons in the approved Fifty (50) Clusters.

Financial Assistance

One cluster of Solar Charkha would involve a maximum subsidy of Rs. 9.599 cr.

The scheme would cover three types of financial assistance, namely-

1) Capital subsidy for individual and for Special Purpose Vehicle (SPV):

  • 2000 Solar Charkhas at the maximum price of Rs.45,000/- per charkha and a subsidy of Rs.15,750/- per charkha works out to a cumulative subsidy of Rs.3.15 crore for 1000 spinners.

  • One unit of two Solar Charkhas would produce 2.0 kg of yarn on an average per day, resulting in a production of 2.0 tons per 2000 charkhas. Thus, 500 Solar Looms would be required to convert the yarn into the fabric at the maximum price of Rs.1,10,000/- per loom and subsidy @35% at Rs.38,500/- per loom and the cumulative subsidy works out to Rs.1.93 crore for 500 weavers.

  • The capital cost of construction of work shed with a minimum space of 20,000 sq. ft with 100% subsidy at the maximum rate up to Rs.1.20 crore per cluster for the SPV.

  • The capital cost of the Solar Grid of 50 KW capacity with 100% subsidy at the maximum rate up to Rs.0.40 crore per cluster for the SPV.

  • One-time Capital Cost Subsidy for the SPV @35% works out to a maximum of Rs.0.75 crore per Cluster for the purchase of twisting machines, dying machines and stitching machines (500 in number) for making the unit self-sustainable and for value addition.

2) Interest subvention for Working Capital:

  • It is proposed to have a ceiling of 8% of interest subvention on working capital irrespective of the interest rates being charged by the Banks/Financial Institutions for six months. Recurring Working Capital cost for six months at the rate of interest subvention of 8% works out to Rs.1.584 crore for one cluster including the cost of roving, wages of spinners and weavers.

3) Capacity building:

  • The scheme envisages courses for the spinners/weavers and others involved in the garment unit at a total cost of Rs 0.595 cr per cluster for two years.

Eligibility Criteria for Solar Charkha Mission

Following entities can apply for Solar Charkha Mission

A) Existing Khadi and Village Industry Institution (KVI) could apply for setting up Such a Cluster. However, the following parameters must be fulfilled:

  • KVI has a positive balance sheet and assets in favour of the institution.

  • KVI has an artisan base of not less than 200.

  • KVI has a sales turnover of not less than Rs. One Crore in each of the preceding three financial years.

  • Should have an increase in the number of new artisans in the last three years.

B) Other Institutions such as SPV, Society, Trust, Section 8 Company or LLP under Companies Act, 2013 registered under respective statutes could also apply for setting up a new Solar Charkha Cluster, with the following criteria:

  • Vision and Mission

  • Board and Governing Structure with sufficient experience.

  • Proper Management Information System (MIS).

  • Financial resources-equity and debt.

  • Financial Performance for last three years-profitability and IRR.

C) First Timers who want to join the village industry movement through solar charkha clusters could apply for a new cluster, with the following criteria:

  • Highest Commitment to the cause of Social and rural upliftment

  • Funding commitment from Scheduled Commercial Banks/NBFC/Venture Capital Fund/Private Equity funds.

  • Proper Management Information System (MIS).

  • Any other criteria to be approved by the governing council.

Promoters will fulfil the following criteria at the time of application:

  • A baseline survey would be conducted by the promoter, and at least 200 members would be identified with Aadhar Numbers of which at least 50% shall be women.

  • Land of a minimum of 20,000 sq. ft and up to 2 acres will be provided by the promoter either owned or on a long-term lease of a minimum of 15 years. The land will be arranged by the promoter and all expenditure about the land will be made by the promoter.

  • The small promoter agency will deposit at least 15% of the requirement of the working capital or at least three months projected amount of working capital in a separate dedicated account only after the final selection of the promoter by the SSC and before the first release fund is made.

  • The promoter agency will form a Special Purpose Vehicle (SPV), before the release of the first instalment of funds, possibly a Section-8 Company or a Producer company under the Companies Act, 2013 for putting up the integrated model of solar charkhas, solar looms, sewing machines etc. with one village being a focal village.

How to apply online for Solar Charkha Mission?

Solar Charkha Mission

  • Click on "Apply Online"

Solar Charkha Mission Online Apply

  • If you are a new applicant, click on "New? Apply here"

Solar Charkha Mission New User

  • Enter the required details.

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