Khadi Vikas Yojana 2026: Workshed Grants, Production Subsidy & Application Process

At a glance

About the scheme

Khadi Vikas Yojana is a flagship component under the Khadi Gramodyog Vikas Yojana, executed by the Khadi and Village Industries Commission under the Ministry of Micro, Small and Medium Enterprises. The initiative supports rural Khadi artisans and institutions by offering production incentives, subsidised bank credit, modern worksheds, and marketing infrastructure. Through quality enhancement, exhibition opportunities, and financial revival packages for struggling societies, the programme aims to sustain rural livelihoods, upgrade production technology, and promote indigenous handspun fabrics across national and international markets.

Benefits

• Modified Market Development Assistance (MMDA) offers a 35% subsidy on prime cost for Cotton, Muslin, Wool, and Polyvastra Khadi.
• MMDA provides a 20% subsidy on prime cost for Silk Khadi to support institution costs and artisan earnings.
• Interest Subsidy Eligibility Certificate (ISEC) limits the bank loan interest payable by Khadi institutions to just 4%, with KVIC funding the remaining interest balance.
• Individual workshed grant of ₹1,20,000 or 75% of the construction cost including toilet (90% for North Eastern Region), whichever is lower, for a 20 sq. metre area.
• Group workshed grant of ₹80,000 per artisan or 75% of the cost including toilet (90% for North Eastern Region), whichever is lower, for a 10 sq. metre area per artisan.
• Financial revival package of up to ₹15.00 lakh for weak Khadi institutions covering capital expenditure and working capital requirements.
• Marketing infrastructure financial support of up to ₹25.00 lakh for the renovation and modernisation of KVIC, KVIB, and institutional sales outlets.
• Support for Centre of Excellence for Khadi, quality assurance initiatives, marketing exhibitions, and science and technology interventions.

Who can apply (eligibility)

• The applicant must be a Khadi artisan or a Khadi institution registered with KVIC or KVIB.
• Artisans must be between 18 and 55 years of age.
• The applicant must hold a valid Aadhaar card or government-issued photo identity proof.
• Assistance is restricted to only one eligible beneficiary per family.
• The applicant must not have availed benefits from any other government scheme for the exact same purpose.
• Preference is accorded to applicants belonging to SC, ST, women, unemployed youth, and BPL categories.
• Beneficiaries may be sponsored or identified by KVIC, KVIBs, registered NGOs, DICs, FPOs, or affiliated Khadi institutions.

Who cannot apply

• Applicants below 18 years or above 55 years of age.
• Individuals or institutions that have already obtained assistance for the same purpose under any other government scheme.
• More than one applicant from the same family.
• Artisans or institutions not registered with KVIC or State KVIBs.

Documents required

• Aadhaar card or valid government-issued identity proof
• Age proof document
• Khadi artisan card or Khadi institution registration certificate
• Bank account passbook or account details
• Caste certificate (if claiming SC or ST preference)
• BPL card or certificate (if applicable)
• Project proposal or workshed details (if required)

How to apply

1. 1Open the official Khadi and Village Industries Commission portal at kviconline.gov.in.
2. 2Navigate to the Khadi Certificate section and click on the Online Registration of Khadi Institutions link.
3. 3Enter the requested details regarding the institution, contact person, artisan count, and premises infrastructure, then save your details.
4. 4Receive your Username, Password, and Unique Application ID via registered mobile and email, and download the acknowledgement receipt.
5. 5Sign in through the applicant login portal using your credentials and upload the required registration papers, artisan lists, and workshed proposals.
6. 6Submit the application for physical and documentary scrutiny by the KVIC office to receive the approved Certificate of Registration online.

Frequently asked questions