AI SummaryMission Solar Charkha is a scheme by the Ministry of Micro, Small & Medium Enterprises, Government of India, made to promote sustainable rural industrialisation. It supports the setup of solar charkha clusters, giving financial subsidies and resources to artisans, spinners and weavers to create jobs and improve the rural economy.
Scheme has been closed or it was a one time scheme which has been closed by the government.
As of August 2026, Mission Solar Charkha stays a pilot project. As per MSME directions, no fresh proposals are being accepted until the outcome of the existing 9 pilot projects is fully assessed. The department running the scheme is not taking new applications under this programme for now.
Mission Solar Charkha Introduction
Mission Solar Charkha is a pilot project run by the Ministry of Micro, Small & Medium Enterprises, Government of India. It focuses on creating solar charkha clusters, which link a focal village and the nearby villages within a radius of 8 to 10 kilometres.
Each cluster is made to support between 200 and 2042 eligible people, including spinners, weavers and skilled artisans. To keep output high, each spinner gets two charkhas with 10 spindles each, and a standard cluster holds roughly 1000 charkhas. At full capacity, one cluster creates direct work for 2042 artisans.
The Government of India approved the setup of 50 such clusters with a budget of ₹550 crore for the 2018-19 and 2019-20 financial years. This scheme aims to give direct work to nearly one lakh people across the approved clusters.
Main aims:
- To encourage inclusive growth for women and youth through long-term solar charkha clusters in rural areas.
- To improve the rural economy and help reduce migration from villages to cities.
- To use low cost, new technology so that the project stays useful over a long period.
Keep in mind that further expansion of Mission Solar Charkha will happen only after the 9 pilot projects are assessed. Until then, the government will not look into any fresh proposals.
Key Information
| Scheme Name | Mission Solar Charkha |
|---|---|
| Level | Central |
| Scheme For | Infra |
| Beneficiary States | All |
| Category | Banking, Financial Services and Insurance |
| Target Beneficiaries | Individual, Registered Societies, Business Entity, Joint Liability Groups (JLGS), NGO, Trust |
| Sub Category | Loan |
| Benefit Type | Composite |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Micro, Small and Medium Enterprises |
| Implementing Agency | Ministry of Micro, Small & Medium Enterprises, Government of India |
| Tags | Solar Charkha, Employment, Capital Subsidy, Solar Grid, Interest Subvention, Capacity Building, Spinner, Weaver |
Benefits
Project help and financial support:
One solar charkha cluster can get a maximum subsidy of ₹9.599 crore.
| Item | Maximum Price | Subsidy |
|---|---|---|
| Solar Charkha (per unit) | ₹45,000 | ₹15,750 |
| Solar Loom (per unit) | ₹1,10,000 | ₹38,500 |
| Work Shed Construction | Up to ₹1.20 crore | 100% |
| 50 KW Solar Grid | Up to ₹0.40 crore | 100% |
Capital subsidy for SPV and individuals:
The scheme supports buying machinery like twisting, dyeing and stitching units for the Special Purpose Vehicle (SPV) with a 35% capital subsidy, capped at ₹0.75 crore per cluster. On top of this, a 8% interest subsidy on working capital is given for six months, which adds up to roughly ₹1.584 crore per cluster. Training costs are also covered with ₹0.595 crore per cluster for a two year training period.
Eligibility
Criteria for promoter agency or SPV:
- Existing Khadi and Village Industry (KVI) Institutions: A clear balance sheet, an artisan base of at least 200 workers, and yearly sales of at least ₹1 crore for the past three financial years are required.
- Other Institutions (Society, Trust, LLP, Section 8 Company): A clear vision, a qualified governing board, a working Management Information System (MIS), and a strong financial record on profitability and returns are needed.
- First-time Promoters: A high commitment to social and rural uplift, proof of funding from banks or venture capital, and a strong management system should be shown.
Baseline requirements for all applicants:
- Run a baseline survey to find at least 200 members, with at least 50% being women, and collect their Aadhaar information.
- Arrange a suitable site of 20,000 square feet to 2 acres, owned or on a long term lease of at least 15 years.
- Deposit 15% of the working capital need in a separate account before the project starts.
- Form a formal SPV, such as a Producer Company, before the first fund part is released.
Application Process
Because fresh proposals are not being accepted until the pilot projects are assessed, the online application window for this scheme is not open as of August 2026. Still, older procedure details are given below so the process stays clear.
STEP 1 - Visit the official Mission Solar Charkha page on the MSME website at msme.gov.in/solar-charkha-mission-scm and read the scheme information carefully.
STEP 2 - If the application is open, prepare the proposal in the format given in the scheme guidelines, covering the cluster plan, the baseline survey and the SPV details.
STEP 3 - Submit the proposal as per the instructions on the official portal. A hard copy and a soft copy can be sent to The Chief Executive Officer, Khadi and Village Industries Commission (KVIC), Gramodaya 3, Irla Road, Vile Parle (West), Mumbai - 400056. Contact can also be made on 022-26711577 or at ceo.kvic@gov.in.
STEP 4 - The Scheme Steering Committee (SSC) reviews each proposal based on the track record and development strategy. If progress is not enough, the committee can replace the agency.
Documents
Have the below required documents ready when applying:
- Copy of the organisation's registration certificate.
- Details of the establishment date and core aims.
- List of board members and governing body.
- Details of active project areas.
- Names of major regular donors or funding partners.
- Records of existing MoUs or project linkages.
- Minutes of the latest Annual General Meeting (AGM).
- Audited financial statements and income tax returns for the last three years.
- CVs of key staff with domain skills.
- Records of awards and appreciation received in the last five years.
- A detailed three year work plan with a time linked activity chart.
References
Official Mission Solar Charkha page (MSME)
FAQ's
What is Mission Solar Charkha?
Mission Solar Charkha is a scheme made to set up clusters for spinning and weaving using solar power, to drive village level work and create local jobs.
Which ministry oversees this scheme?
The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, manages this scheme.
What are the main aims?
The goals are to create long-term work for rural women and youth, improve the local village economy, and reduce migration to cities using low cost solar technology.
What is the maximum subsidy per cluster?
One solar charkha cluster can get a maximum subsidy of ₹9.599 crore.
Who can apply?
Existing KVI institutions, NGOs, Trusts, Producer Companies, or people fully committed to rural social uplift can apply.
What are the sales requirements for KVI institutions?
KVI institutions must have yearly sales of at least ₹1 crore for each of the three preceding financial years.
Is the scheme still open for new applications?
As of August 2026, fresh proposals are not being accepted until the 9 pilot projects are assessed. It remains a pilot project for now.
How is the scheme applied for?
Application details are on the official MSME page at msme.gov.in/solar-charkha-mission-scm, or a proposal can be sent to the KVIC head office in Mumbai when the window is open.