Jyoti Gramodyog Vikas Yojana
Margin money 25–30% for rural projects ₹1–25 lakh · artisans, entrepreneurs, SHGs Gujarat
Individual artisans, entrepreneurs, and SHGs in rural Gujarat can get a 25–30% margin money subsidy to set up small production ventures with project costs between ₹1 lakh and ₹25 lakh. The scheme targets villages with 24-hour three-phase electricity, and the subsidy is released after 2 years of successful operation. Apply offline through the District Industries Centre (DIC) of your district.
About This Scheme
Individual artisans, entrepreneurs, and SHGs in rural Gujarat can get a 25–30% margin money subsidy to set up small production ventures with project costs between ₹1 lakh and ₹25 lakh. The scheme targets villages with 24-hour three-phase electricity, and the subsidy is released after 2 years of successful operation. Apply offline through the District Industries Centre (DIC) of your district.
Full official description
Launched on 7th September 2015, the scheme "Jyoti Gramodyog Vikas Yojana" by the Commissioner of Cottage and Rural Industries, Industries & Mines Department, Government of Gujarat, aims to promote rural entrepreneurship by providing financial assistance (margin money subsidy) for setting up new village industries in areas with 24x3-phase electricity supply. The scheme targets individual artisans, entrepreneurs, and Self-Help Groups (SHGs) with project costs ranging from ₹1,00,000/- to ₹25,00,000/-. It offers 25–30% margin money subsidy (higher for SC/ST/women/PH candidates) to incentivize production-oriented ventures. Applications are submitted offline through District Industries Centres (DICs), and subsidies are disbursed after a 2-year successful project run.
Benefits
- 25% margin money subsidy for general category:
- 25% for projects up to ₹10 lakh
- 25% on first ₹10 lakh + 10% on remaining amount for projects up to ₹25 lakh
- 30% margin money subsidy for SC/ST, women, and physically handicapped applicants:
- 30% for projects up to ₹10 lakh
- 30% on first ₹10 lakh + 10% on remaining amount for projects up to ₹25 lakh
- Covers machinery, raw materials, and working capital (working capital capped at 10% of total project cost)
- Subsidy disbursed after 2 years of successful, verified operation
💡 Why Startups Should Care
This scheme specifically targets villages with reliable 24-hour electricity — meaning it's designed for genuinely viable rural manufacturing. SC/ST/Women applicants get an even higher 30% subsidy, making this an attractive entry point for rural industrial ventures.
Who Can Apply (Eligibility)
- Must be between 25 and 50 years of age
- Must have passed at least Class 10 from a recognized board
- Must have at least 1 year of experience in the proposed business or training from a recognized institution
- Must be an individual artisan/entrepreneur or a Grade-II active SHG engaged in small-scale production
- Project must be located in a rural area with a population of 20,000 or less
- Partnership firms, private limited companies, joint ventures, HUFs, and similar entities are NOT eligible
How to Apply
- Visit the District Industries Centre (District Udyog Kendra) of your district.
- Collect the prescribed application format for the scheme.
- Submit your project proposal with cost estimates and machinery quotations.
- Attach Aadhaar/Voter ID, education proof, and bank details.
- The DIC verifies and disburses the margin money subsidy on project approval.
Frequently Asked Questions
What is the minimum and maximum age requirement to apply for this financial assistance scheme?
Applicants must be between 25 and 50 years old at the time of submission to qualify for the scheme.
Is there a minimum educational qualification needed to be eligible for this support?
Yes, applicants must have passed at least Class 10 from a recognized educational board.
Do I need prior experience or training to qualify for this scheme?
You must have either one year of experience in the proposed business activity or relevant training from a recognized institution.
Can Self-Help Groups (SHGs) apply for this financial assistance, or is it only for individuals?
Yes, active Grade-II SHGs engaged in small-scale production, as well as individual artisans/entrepreneurs, are eligible.
Are there any restrictions on where the proposed project can be located?
The project must be set up in a rural area with a population not exceeding 20,000 residents.
Are partnership firms, private companies, or HUFs eligible to apply under this scheme?
No, the scheme excludes partnership firms, private limited companies, joint ventures, and HUFs.
Is there any additional financial benefit for SC/ST, women, or physically handicapped applicants?
Yes, these groups receive a higher subsidy (30% up to ₹10,00,000/-) compared to the general category (25%).
What is the minimum and maximum project cost covered under this scheme?
The project cost must be between ₹1,00,000/- and ₹25,00,000/- to qualify for assistance.
What expenses are covered under the project cost for subsidy calculation?
The subsidy covers machinery, equipment, and working capital (up to 10% of total cost), but excludes land/building expenses.
Is there a minimum investment required in plant and machinery for eligibility?
Yes, a minimum investment of ₹5,00,000/- in plant and machinery is mandatory.
How and when is the subsidy amount disbursed to beneficiaries?
The subsidy is credited to a reserve account first and fully released after 2 years of successful operation, verified by the District Industries Centre.
What documents are required to apply for this scheme?
Needed documents include Aadhaar/Voter ID, Class 10 marksheet, training/employment proofs, project proposal with cost estimates, and bank details.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Aadhaar card / Voter ID
- Class 10th marksheet
- Training certificates or employment records
- Project proposal with cost estimates and machinery quotations
- Bank details for subsidy disbursement