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Mission Solar Charkha is a pilot initiative by the Ministry of MSME to set up Solar Charkha Read More... clusters in rural areas, aiming to generate significant employment and promote sustainable development. Read less
Details
The Indian government, through the Ministry of Micro, Small & Medium Enterprises (MSME), launched the 'Mission Solar Charkha'. This ambitious pilot project focuses on creating solar-powered spinning wheel clusters in villages across India.
What Is This Scheme?
The core idea of Mission Solar Charkha is to establish 'Solar Charkha Clusters'. Imagine a main village with surrounding villages within an 8 to 10-kilometre radius. These clusters are designed to bring together a significant number of beneficiaries, ranging from 200 to 2042 people. These include spinners, weavers, tailors, and other skilled artisans. Each participant gets two solar-powered charkhas, each with 10 spindles. A typical cluster, operating at full capacity, aims to house around 1000 charkhas and provide direct employment to over 2000 artisans.
To kickstart this initiative, the government approved the establishment of 50 such clusters with a substantial budget of ₹550 Crores for the 2018-19 and 2019-20 periods. The goal is to create employment opportunities for about one lakh individuals through these 50 clusters.
Objectives of Mission Solar Charkha
- To foster inclusive growth by creating jobs, especially for women and young people in rural areas, and promoting sustainable development via solar charkha clusters.
- To strengthen the rural economy and help prevent people from migrating to cities.
- To utilize cost-effective, innovative technologies and methods for long-term sustainability.
Important Note: As per MSME directions, further expansion of Mission Solar Charkha will only proceed after assessing the results of the ongoing pilot projects (which are 9 in number). Currently, no new proposals are being accepted.
Who Can Benefit From This Scheme?
The primary beneficiaries of this scheme are individuals residing in rural areas who are skilled or can be trained as spinners, weavers, tailors, and other artisans. The scheme specifically aims to empower women and youth by providing them with employment opportunities and economic independence through these solar charkha clusters.
Why This Scheme Is Important
Mission Solar Charkha is a significant step towards rural empowerment and sustainable development. By harnessing solar energy, it offers a clean and cost-effective way to generate yarn and fabric, boosting the rural economy. It aims to bridge the gap between rural and urban opportunities, reduce migration, and build self-sufficiency among artisans.
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Eligibility Criteria for Mission Solar Charkha
The scheme has specific criteria for organizations or individuals looking to set up Solar Charkha Clusters:
For Promoter Agency/SPV Selection:
A. Existing Khadi and Village Industry Institutions (KVI):
- Must have a positive balance sheet and assets in its favour.
- Should have an existing artisan base of at least 200 individuals.
- Must have achieved a sales turnover of not less than ₹1.00 Crore in each of the last three financial years.
- Should show an increase in the number of new artisans in the past three years.
B. Other Institutions (SPV, Society, Trust, Section 8 Company, LLP):
- Must possess a clear Vision and Mission.
- Should have a Board and Governing Structure with adequate experience.
- Needs a robust Management Information System (MIS).
- Must have secured Financial Resources (equity and debt).
- Should demonstrate positive Financial Performance for the last three years, including profitability and IRR.
C. First-Time Promoters (for new clusters):
- Must demonstrate the highest commitment to social and rural upliftment.
- Needs funding commitment from Scheduled Commercial Banks, NBFCs, Venture Capital Funds, or Private Equity funds.
- Must have a proper Management Information System (MIS).
- Any other criteria as approved by the governing council.
Promoter's Responsibilities at the Time of Application:
- Conduct a baseline survey to identify at least 200 members, ensuring at least 50% are women, and collect their Aadhaar Numbers.
- Arrange land of a minimum of 20,000 sq. feet (up to 2 acres), either owned or on a lease of at least 15 years. All land-related expenses are to be borne by the promoter.
- Deposit at least 15% of the working capital requirement (or at least three months' projected working capital) in a dedicated account after final selection and before the first fund release.
- Form a Special Purpose Vehicle (SPV), preferably a Section-8 Company or Producer Company under the Companies Act, 2013, before the first installment of funds is released. This SPV will manage the integrated model of solar charkhas, looms, etc., with one focal village.
How To Apply for Mission Solar Charkha
Interested organizations and individuals can apply for setting up Solar Charkha Clusters through the official channels:
- Visit the official website of the Khadi & Village Industries Commission (KVIC) at https://kviconline.gov.in/msc/view1.jsp.
- Follow the instructions provided on the website to fill out and submit the application form.
- Ensure all required documents are accurately prepared and uploaded as per the guidelines.
Note: As of now, the scheme is in a pilot phase, and further proposals are entertained only after the evaluation of the existing pilot projects.
Documents Required for Application
Applicants are required to submit a comprehensive set of documents to support their application. These typically include:
- Proof of Legal Status: Certificate of registration and details of whether the organization is National or International.
- Establishment Details: Date of establishment and a summary of registered objectives.
- Governing Body: List of members of the Governing Body / Board of Directors.
- Area of Activity: Details of the organization's operational areas.
- Donors: List of major regular donors, if any.
- MoUs & Linkages: Details of formal Memorandums of Understanding (MoUs) or linkages with other organizations.
- AGM Details: Date of the last Annual General Meeting and attached minutes.
- Financial Records: Annual Audited statements and IT returns for the last 3 years.
- Key Personnel: Brief CV/bio-data of individuals with domain expertise, understanding of innovation, and entrepreneurial interest.
- Awards & Recognition: Details of significant awards and recognitions received in the last 5 years.
- Other Activities: Information on any other notable activities in innovation and entrepreneurship.
- Institution Strength: Details on the institution's capacity and preparedness to host a cluster.
- Work Plan: A year-wise work plan for three years, including a detailed, time-linked activity chart.
- Additional Documents: Any other documents as may be required by the approving authority.
FAQ’s
What is the main goal of the 'Mission Solar Charkha' initiative?
The primary goal is to establish Solar Charkha Clusters, which are village-based setups designed to employ villagers, especially women and youth, in spinning and weaving using solar power. It aims to boost the rural economy and promote sustainable development.
Which government ministry is responsible for the Mission Solar Charkha scheme?
The Ministry of Micro, Small & Medium Enterprises (MSME), Government of India, is the implementing ministry for this scheme.
What kind of financial assistance does the scheme offer for setting up a cluster?
The scheme provides significant capital subsidies for charkhas, looms, work sheds, solar grids, and value addition machinery. It also offers interest subvention on working capital and funds for capacity building.
How many artisans can a single Solar Charkha Cluster support?
A Solar Charkha Cluster is planned to support between 200 to 2042 beneficiaries, including spinners, weavers, and other skilled artisans.
Who is eligible to apply to set up a Solar Charkha Cluster?
Existing Khadi and Village Industry Institutions (KVI), as well as other organizations like SPVs, Societies, Trusts, Section 8 Companies, or LLPs registered under the Companies Act, 2013, are eligible to apply.
What are the key financial requirements for a promoter to participate?
Promoters must deposit at least 15% of the working capital requirement, or three months' projected working capital, into a separate account after selection and before the first fund release. They also need to arrange land and cover related expenses.
How can I find the application link for the Mission Solar Charkha scheme?
You can apply online through the official website of the Khadi & Village Industries Commission (KVIC) at https://kviconline.gov.in/msc/view1.jsp.
What is the maximum subsidy amount available for one Solar Charkha cluster?
One cluster of Solar Charkha can receive a maximum subsidy of ₹9.599 crore.
What is the role of a Special Purpose Vehicle (SPV) in this scheme?
The SPV is a legal entity, typically a Section-8 Company or Producer Company, formed by the promoter to manage and operate the integrated model of solar charkhas, looms, and other related activities within the cluster.
Does the scheme aim to stop migration from villages?
Yes, one of the key objectives of the scheme is to boost the rural economy and create employment opportunities in villages, thereby helping to reduce migration from rural to urban areas.
Are there any specific requirements for women applicants or beneficiaries?
Yes, the scheme emphasizes inclusive growth, and promoters are required to identify at least 200 members for the cluster, with a minimum of 50% being women. This highlights a strong focus on empowering women.
What is the current status of new applications for the scheme?
As per MSME guidelines, new proposals are currently on hold. Applications will only be considered after the outcomes of the pilot projects are thoroughly assessed.
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