Solar Charkha Mission

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 [Edit] [Edit]

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 [Edit] [Edit]

• 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 [Edit] [Edit]

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 [Edit] [Edit]

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? [Edit] [Edit]

• Visit Khadi and Village Industries website

• Click on "Khadi". Select "Mission Solar Charkha"

• Click on "Apply Online"

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

• Enter the required details.