Mission Solar Charkha
Up to ₹9.6 crore per cluster · Solar Charkha production units · India
A Ministry of MSME pilot scheme to set up solar-powered spinning and weaving clusters in rural India, directly employing up to 2,042 artisans per cluster — with a strong focus on women. Promoter agencies (NGOs, cooperatives, KVI institutions, or companies) can receive up to ₹9.6 crore in subsidies per cluster covering solar charkhas, looms, work sheds, a solar grid, and working capital. Note: As of the latest guidelines, no new proposals are being accepted until the outcomes of the 9 existing pilot clusters are assessed.
About This Scheme
A Ministry of MSME pilot scheme to set up solar-powered spinning and weaving clusters in rural India, directly employing up to 2,042 artisans per cluster — with a strong focus on women. Promoter agencies (NGOs, cooperatives, KVI institutions, or companies) can receive up to ₹9.6 crore in subsidies per cluster covering solar charkhas, looms, work sheds, a solar grid, and working capital. Note: As of the latest guidelines, no new proposals are being accepted until the outcomes of the 9 existing pilot clusters are assessed.
Full official description
The scheme “Mission Solar Charkha” a pilot project was implemented by the Ministry of Micro, Small & Medium Enterprises, Government of India. The scheme envisages 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 Crores for 2018-19 and 2019-20. The Scheme is envisaged to generate direct employment of nearly one lakh persons in the approved Fifty (50) Clusters. Objectives:
- 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.
(This is to inform that as per MSME directions, further Mission Solar Charkha will only be undertaken after the outcome of the Pilot projects is assessed (9 in number) and till such time no fresh proposals will be entertained.)
Benefits
- Maximum subsidy of ₹9.599 crore per cluster:
- ₹15,750 capital subsidy per solar charkha (for up to 2,000 charkhas) = up to ₹3.15 crore
- 35% capital subsidy on up to 500 solar looms = up to ₹1.93 crore
- 100% subsidy on work shed construction (up to ₹1.20 crore) and 50 KW solar grid (up to ₹0.40 crore)
- 35% subsidy on dyeing, twisting, and stitching machines = up to ₹0.75 crore
- 8% interest subvention on working capital for 6 months (up to ₹1.584 crore)
- Training grants of ₹0.595 crore per cluster over 2 years for spinners, weavers, and tailors
- Each approved cluster can employ up to 2,042 artisans directly
💡 Why Startups Should Care
Solar Charkha clusters combine renewable energy with traditional spinning — a unique green manufacturing model. For a promoter agency, this scheme's substantial subsidy (up to ₹9.6 crore) can seed an entire rural employment ecosystem around sustainable textile production.
Who Can Apply (Eligibility)
- Promoter must be an Indian agency, one of:
- Existing KVI institution with at least 200 artisans, ₹1 crore annual turnover (3 consecutive years), and a positive balance sheet
- NGO, society, trust, Section 8 company, or LLP registered under applicable statutes
- First-time promoters with confirmed funding from banks, NBFCs, or venture capital
- Must conduct a baseline survey identifying at least 200 members (minimum 50% women) with Aadhaar numbers
- Must arrange at least 20,000 sq. ft. of land (owned or leased for 15+ years)
- Must form a Special Purpose Vehicle (Section-8 or Producer Company) before first fund release
- Must deposit at least 15% of required working capital in a dedicated bank account before first installment
How to Apply
- Visit the official Mission Solar Charkha website and apply online.
- Submit legal status documents (registration certificate) confirming your organization type.
- Provide establishment date and organizational details.
- Propose the cluster covering 2,000 Solar Charkhas per unit.
- On approval, capital subsidy is disbursed per the intervention type (individual or SPV).
Frequently Asked Questions
What is the “Mission Solar Charkha”?
The 'Mission Solar Charkha' envisages 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.
Which ministry has launched ‘Mission Solar Charkha (MSC)’?
Ministry of Micro, Small & Medium Enterprises (MSME), Government of India
What are the objectives of the scheme?
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.
What is the maximum subsidy involved One cluster of Solar Charkha?
One cluster of Solar Charkha would involve a maximum subsidy of [?]9.599 cr.
Who can apply under the scheme?
Individual, Existing Khadi & Village Industry Institution and other Institutions such as SPV, Society, Trust, Section 8 Company or LLP under the Companies Act, 2013 registered under respective statutes could also apply for setting up a new Solar Charkha Cluster.
What are the eligibility criteria required for existing Khadi and Village Industry Institution (KVI) to apply for setting up a Cluster?
Existing Khadi and Village Industry Institution (KVI) could apply for setting up such a Cluster. However, the following parameters must be fulfilled:
- KVI having a positive balance sheet and assets in favour of the institution.
- KVI having an artisan base of not less than 200.
- KVI having a sales turnover of not less than [?]1.00 Crore in each of the preceding three financial years.
- Should have been an increase in a number of new artisans in the last three years.
What are the eligibility criteria required for other Institutions to apply for setting up a new Solar Charkha Cluster?
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.
What role does the Scheme play in sustainable development?
The Scheme promotes sustainable development by introducing solar charkha clusters, ensuring environmentally friendly practices and creating long-term economic opportunities in rural regions.
Can institutions from any location apply to set up a Solar Charkha Cluster?
The eligibility criteria apply to institutions nationwide, but the governing council may specify additional criteria.
What is the significance of the baseline survey mentioned in the criteria?
The baseline survey helps the promoter identify a minimum of 200 members, with at least 50% being women, and gather essential details for project planning.
What happens if the promoter does not fulfill the deposit requirement for the working capital?
Non-fulfillment of the deposit requirement may impact the release of funds. Promoters are encouraged to adhere to this criterion to ensure a smooth process.
How can an applicant apply under the scheme?
Applicants can apply online through the Official Website https://kviconline.gov.in/msc/view1.jsp of the Khadi & Village Industries Commission.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Legal status of the organization (registration certificate)
- Establishment date and organizational details