Khadi Gramodyog Vikas Yojana | 20 Feb 2019

The Cabinet Committee on Economic Affairs has approved the following:

  • 8 different schemes of Khadi & Village Industries are now merged under two heads i.e. 'Khadi Vikas Yojana' and 'Gramodyog Vikas Yojana':
    • Khadi Vikas Yojana includes Market Promotion & Development Assistance (MPDA), Interest Subsidy Eligibility Certificate (ISEC), Workshed, Strengthening Weak Infra, Aam Aadmi Bima Yojana, Khadi Grant.
    • Gramodyog Vikas Yojanaa [Village Industries Grant].
  • To bring in a new component of 'Rozgar Yukt Gaon' to introduce enterprise-based operation in the Khadi sector and to create employment opportunities.


  • The Market Promotion and Development Assistance Scheme (MPDA) was launched as a unified scheme by merging different schemes implemented by the Khadi sector including publicity, marketing, market promotion, and marketing development assistance.
  • Grant/subsidy was also provided for construction of Khadi plazas. The overall objective of the scheme is to ensure increased earnings for artisans.

Interest Subsidy Eligibility Certificate

  • Interest Subsidy Eligibility Certificate Scheme was launched in May 1977 to help Khadi and Polyvastra producing institutions in mobilizing the capital funds from banking institutions.
  • Under the Scheme, implementing agencies can avail of bank loan as per the ISEC issued by the KVIC on payment of only 4 percent of interest and difference between the actual interest charged by the bank and 4 percent is borne by KVIC as interest subsidy.

Rozgar Yukt Gaon

  • Rozgar Yukta Gaon (RYG) aims at introducing an 'Enterprise-led Business Model' in place of 'Subsidy-led model' through a partnership among 3 stakeholders- Khadi Reform and Development Programme (KRDP)-assisted Khadi Institution, Artisans and Business Partner.
  • It will be rolled out in 50 Villages by providing 10,000 Charkhas, 2000 looms & 100 warping units to Khadi artisans, and would create direct employment for 250 Artisans per village.