AI SummaryJyoti Gramodyog Vikas Yojana offers margin money subsidies of 25% to 30% for new rural industrial projects with costs between ₹1,00,000 and ₹25,00,000. This Gujarat government scheme is still open for rural artisans, entrepreneurs, and active Self-Help Groups (SHGs) living in villages with 24-hour electricity, helping them set up local businesses with financial support.
Jyoti Gramodyog Vikas Yojana - Introduction
Jyoti Gramodyog Vikas Yojana helps rural residents by offering margin money subsidies for starting new industrial ventures. If you are an aspiring entrepreneur or an active member of a Self-Help Group (SHG) living in a village with 24-hour, 3-phase electricity, this scheme gives the financial push you need. Your project cost should ideally range between ₹1,00,000 and ₹25,00,000 to qualify for this support.
Launched on 7th September 2015 by the Commissioner of Cottage and Rural Industries, Government of Gujarat, this scheme supports individuals aged 25 to 50 who have passed at least Class 10. You should submit your application offline through the district industries centre (DIC). The government grants a margin money subsidy of 25% to 30% depending on your category, provided your venture runs successfully for two years.
Key Information
| Scheme Name | Jyoti Gramodyog Vikas Yojana |
|---|---|
| Level | State |
| Target Beneficiary | Individual |
| State | Gujarat |
| Benefit Type | Cash Subsidy |
| Nodal Department | Industries and Mines Department |
Benefits
Margin Money Subsidy Structure
| Category | Subsidy for up to ₹10 Lakhs | Subsidy for 10-25 Lakhs |
|---|---|---|
| General | 25% | 25% on first ₹10L + 10% on remaining |
| SC/ST/Women/PH | 30% | 30% on first ₹10L + 10% on remaining |
This scheme covers costs related to machinery, raw materials, and working capital, which can make up to 10% of the total project cost. Please note that land and building construction expenses are not covered. The subsidy stays in a reserve account and the government credits it to your bank account once your business completes two years of successful, verified operation.
Eligibility
Who can apply?
You should meet the following criteria to apply for this scheme:
1. You must be aged between 25 and 50 years.
2. You should have passed at least Class 10 from a recognized board.
3. You must have at least one year of relevant business experience or a valid training certificate.
4. You should be an individual artisan, entrepreneur, or a member of a Grade-II active Self-Help Group.
5. Your project location must be in a rural area with a population of 20,000 or fewer.
6. Your enterprise must be a new venture and not a partnership firm, private limited company, joint venture, or HUF.
Application Process
How to apply
Follow these simple steps to start your application process:
STEP 1 - Visit your local District Industries Centre (DIC) to collect the official application form. Alternatively, download the prescribed application format online.
STEP 2 - Fill in all your details accurately. Attach a passport-sized photograph and make sure you include all required supporting documents.
STEP 3 - Submit your completed application and the document set to the designated official at the DIC.
STEP 4 - Collect your acknowledgement receipt. This receipt serves as your proof of submission and should carry a unique tracking number for your reference.
Documents
When preparing your application, gather the following documents:
1. Government identity proof such as your Aadhaar Card or Voter ID.
2. Your Class 10 marksheet as proof of education.
3. Valid training certificates or records of previous employment.
4. A detailed project proposal, including your cost estimates and machinery quotations.
5. Your active bank account details for smooth subsidy payment.
References
Official Guidelines (Commissioner of Cottage & Rural Industries)
FAQ's
What is the age limit for applying?
You must be between 25 and 50 years of age to submit your application.
Is a minimum educational qualification mandatory?
Yes, you must have passed your Class 10 examination from a recognized educational board.
Do I need prior experience to start?
You should have at least one year of either work experience in the trade or a formal training certificate.
Are Self-Help Groups eligible?
Yes, active Grade-II SHGs are encouraged to apply for the scheme.
Where must my project be located?
Your business unit should be based in a rural area with a population under 20,000.
Can a private company apply?
No, this scheme is strictly for individuals and SHGs; entities like private limited companies or partnership firms are not eligible.
Are there extra benefits for women?
Yes, women, SC/ST, and physically handicapped applicants receive a higher subsidy rate of 30% for the first ₹10,00,000 of the project cost.
What is the accepted project cost range?
Your project cost must be at least ₹1,00,000 and cannot exceed ₹25,00,000.
Which expenses are covered?
The subsidy covers machinery, equipment, and up to 10% of total costs for working capital. Land and building costs are excluded.
Is there a minimum plant investment required?
Yes, a minimum investment of ₹5,00,000 in plant and machinery is required.
When do I receive the subsidy?
The government releases the subsidy fully after two years of successful, verified business operations.
What documents are essential?
You will need your ID, education certificate, project report, and banking details to get started.