Employment Subsidy Scheme, 2017 2026

This scheme offers vital skill development training and essential tools to artisans and workers across India, empowering Read More... them to boost their income and create self-employment opportunities in traditional rural industries. Read less

Details

In a bid to revive and strengthen India's rich tradition of rural industries, the Khadi and Village Industries Commission (KVIC) under the Ministry of MSME has launched the Gramodyog Vikas Yojana. This umbrella scheme is designed to provide a much-needed boost to artisans and workers across various sectors.

What Is This Scheme?

The Gramodyog Vikas Yojana focuses on hands-on training and practical skills for individuals involved in traditional and modern village industries. It's not just about learning; it's about getting the resources to succeed. The scheme supports sectors like wellness and cosmetics, leather goods, pottery, agro-food processing, and even technical trades like electricians and plumbers.

Who Can Benefit From This Scheme?

This scheme is a great opportunity for anyone looking to enhance their skills and livelihood in rural industries. It's particularly beneficial for Khadi artisans, rural youth, and workers interested in trades such as making agarbattis, leather footwear, pottery, beekeeping, wooden crafts, handmade paper products, food processing, or services like electrical and plumbing.

Why This Scheme Is Important

The Gramodyog Vikas Yojana plays a crucial role in empowering individuals in rural areas. By providing specialized training and essential machinery or tool kits, it aims to increase productivity, enhance earning potential, and promote self-employment. This initiative helps revive India's traditional crafts and industries, fostering economic growth at the grassroots level.

Objective

This scheme offers vital skill development training and essential tools to artisans and workers across India, empowering them to boost their income and create self-employment opportunities in traditional rural industries.

Benefits

Reimbursement shall be restricted to ₹7,000/- per Goan employee per month.

The total subsidy for Micro, Small, Medium enterprises and eco-tourism projects shall not exceed ₹25,00,000/- per annum, on a pro rata basis depending on the date of production.

The total subsidy for Large enterprises shall not exceed ₹50,00,000/- per annum, on a pro rata basis depending on the date of production.

Subsidy is calculated based on the ratio of percentage of Goan employment, which provides a proportional increase from 60% benefit for 60% Goan employees, up to 100% benefit for 80% and above Goan employees.

Benefit Disbursal

For Micro, Small, Medium enterprises and eco-tourism projects, the total wages paid to Goan employees shall be restricted to 50% before applying the reimbursement ratio.

For Large enterprises, the total wages paid to Goan employees shall be restricted to 25% before applying the reimbursement ratio.

The benefits under this scheme are subject to budgetary allocation.

The period of grant of subsidy shall not exceed seven years.

Conditions

The enterprise must allow and/or grant free access to any official authorized by the Directorate of Industries, Trade and Commerce for conducting inspection/supervision of the unit or the registers or holding discussions with the employed employees for ensuring proper utilisation of the financial incentives/subsidies granted by the State Government.

The enterprise must submit all necessary reports, information, and documents specified under the scheme or as required or directed by the Directorate of Industries, Trade and Commerce (DITC) from time to time or as and when required.

Sources and references

Guidelines & Application Form

Who Can Apply?

You must be a Khadi artisan or a Khadi Institution registered with KVIC or KVIB.
Your age should be between 18 and 55 years.
You need to have a valid Aadhaar card or any other government-issued ID.
Only one person from each family can benefit from this scheme.
You should not have already received help from another government scheme for the same purpose.
Priority is given to applicants from SC/ST communities, women, unemployed youth, and those belonging to the BPL (Below Poverty Line) category.
Beneficiaries can be identified by KVIC, KVIBs, NGOs, DICs, FPOs, or Khadi Institutions.

How To Apply

The application process is managed through identified institutions. Beneficiaries are typically identified by:

Khadi and Village Industries Commission (KVIC)
Khadi and Village Industries Boards (KVIBs)
Non-Governmental Organizations (NGOs)
District Industries Centres (DICs)
Farmer Producer Organizations (FPOs)
Khadi Institutions

For specific details on how to be identified or to apply, it is recommended to contact your nearest KVIC or KVIB office, or a local NGO working in this sector. Official notifications or application links, if available, will be updated on the KVIC website: www.kvic.gov.in.

Documents You'll Need

Aadhaar Card or any other government-issued ID proof.
Proof of age (e.g., birth certificate, school leaving certificate).
Your Khadi artisan card or Khadi Institution registration certificate.
Bank account details (account number, IFSC code, branch name).
Caste certificate (if you belong to SC/ST category).
BPL certificate (if you are from a Below Poverty Line household).
A brief project proposal or details of your workspace, if needed for your chosen trade.

FAQ’s

What is the main aim of this Gramodyog Vikas Yojana?

The primary goal is to equip beneficiaries with specialized skills, provide them with necessary tools and machinery for production, encourage self-employment, and ultimately improve the income levels of artisans and young people in rural areas.

Can I apply if I'm from a reserved category or a woman?

Yes, absolutely. The scheme gives preference to applicants from SC/ST communities, women, unemployed youth, and those who are BPL cardholders. Your background can actually increase your chances of selection.

What kind of skills can I learn through this scheme?

You can learn practical skills in various trades. This includes making agarbattis, designing and manufacturing leather footwear, wheel pottery, beekeeping, crafting wooden toys and products, making handmade paper items and fiber products, processing agro-food items, and even vocational trades like becoming an electrician or plumber.

Will I receive any equipment or tools after training?

Yes, that's a key part of the scheme! After completing your training, you'll receive industry-specific tools, machinery, and equipment to help you start or improve your production. For example, you might get an electric potter wheel, a tool kit, or bee boxes with live colonies.

Does this scheme help in starting my own business?

Definitely. The scheme is designed to foster self-employment. By providing skills and resources, it empowers trained beneficiaries to launch their own small businesses, earn a sustainable income, and become self-reliant.

Are there different industries or sectors covered by this Yojana?

Yes, the scheme covers a wide range of industries. These include sectors like Wellness & Cosmetics, Handmade Leather & Plastic products, Mineral-Based Industries, Agro-Food Processing, Rural Engineering & New Technology, Handmade Paper & Fiber products, and the Service Industry.

Is there a cost for the training provided under this scheme?

No, the training provided under the Gramodyog Vikas Yojana is completely free of charge for the beneficiaries. The government supports these programs to build skills and create opportunities.

How are the people who will get the training selected?

The selection of beneficiaries is done by recognized bodies such as KVIC, KVIBs, NGOs, DICs, FPOs, or Khadi Institutions. These organizations help identify individuals who can benefit most from the scheme.

What is the main outcome or result for someone who joins this scheme?

The main outcome is that beneficiaries gain the ability to start or improve their own livelihood activities. They become self-employed, leading to better income and economic independence.

What is the age requirement to be eligible for this scheme?

To be eligible for this scheme, you must be between 18 and 55 years of age.

Can multiple members from the same family apply and receive benefits?

No, the scheme allows only one person per family to apply and receive benefits to ensure wider reach and equitable distribution of opportunities.