Gramodyog Vikas Yojana: Revolutionizing Rural Entrepreneurship

What Is Gramodyog Vikas Yojana?

The Gramodyog Vikas Yojana (GVY) is a central sector scheme that promotes and develops village industries through various initiatives such as providing common facilities, technological modernization, training, and other support and services. 

The scheme is divided into several components, including the Wellness & Cosmetics Industry (WCI), Handmade Paper, Leather & Plastic Industry (HPLPI), Agro Based & Food Processing Industry (ABFPI), Mineral Based Industry (MBI), Rural Engineering & New Technology Industry (RENTI) and Service Industry, all aimed at promoting and supporting the growth of these industries in rural areas. To avail of the scheme’s benefits, one has to satisfy the eligibility criteria the Ministry of MSME set out.

Objectives of Gramodyog Vikas Yojana

• To generate sustainable employment opportunities in rural areas by promoting rural industries and micro-enterprises.
• To provide skill development training and entrepreneurship development programs to rural youth and women to promote self-employment and entrepreneurship.
• To create sustainable livelihoods and income-generating activities in rural areas by promoting non-farm and agro-based industries.
• To promote rural industrialization and value addition to local resources and products to enhance marketability and competitiveness.
• To strengthen rural infrastructure and support services like power supply, transportation, marketing, and credit facilities to promote rural industries and entrepreneurship.
• To encourage the use of modern technology and best practices in rural industries to enhance productivity and quality.
• To promote social inclusion and empowerment of marginalized communities like SCs/STs, women, and minorities in rural areas by promoting rural industries.
• To promote sustainable development and reduce migration from rural to urban areas by creating sustainable employment opportunities in rural areas.

Eligibility Criteria Of Gramodyog Vikas Yojana:

• The Khadi and Gramodyog Vikas Yojana (KGVY) is open to all Indian citizens between the ages of 18 and 55 with a valid Aadhar Card or other government-issued identification. 
• Only one person per family is eligible for assistance under the KGVY, and preference will be given to people from disadvantaged groups such as Scheduled Castes (SC) and Scheduled Tribes (ST), women, and unemployed youth.
• And one still needs to receive benefits from other government schemes for the same purpose. 

Selection of Beneficiaries For Gramodyog Vikas Yojana:

• Through awareness camps and advertisements, organizations such as the Khadi and Village Industries Commission (KVIC), NGOs, and village-level groups will identify the beneficiaries. 
• Candidates must provide proof of age, address, photograph, and mobile number.
• They will be required to contribute to the maintenance of any machinery, tools, or equipment provided to them. 

Six Verticals of KVIC for the Development of Village Industries:

• Rural Engineering and New Technology Industries
• Agro-Based Food Processing Industries
• Wellness and Cosmetics Industries
• Handmade Paper, Leather & Plastic Industries
• Service Industries

Different Components of Gramodyog Vikas Yojana:

Component I: Agarbatti Industries under Wellness and Cosmetics Industries (WCI) vertical.

Component II: Footwear Repairing/ Manufacturing Programme under Hand Made Paper, Leather & Plastic Industries (HMPLPI) vertical.

Component III: Pottery Activities under Mineral Based Industries (MBI) vertical.

Component IV: Honey Mission Programme / Bee Keeping Activity under Agro-Based and Food Processing Industries (ABFPI) vertical.

Component V: Waste Wood, Turn Wood, Wooden Toys, Panchgavya, Cotton Wicks & Cow Dung Log under Rural Engineering and New Technology (RENTI) Industries vertical.

Component VI: Handmade Paper and Fibre Industry under Hand Made Paper, Plastic, and Leather Industry vertical.

Component VII: Agro-Based Food Processing Industries vertical.

Component VIII: Service Industry.

Let’s understand each component in detail:

Component I: Agarbatti Industries under Wellness and Cosmetics Industries (WCI) vertical

1. The Agarbatti Industry Program is a component of the Wellness & Cosmetic Industry (WCI) vertical under the Gramodyog Vikas Yojana (GVY).
2. The program focuses on training and distributing pedal/automatic-operated Agarbatti machines to artisans and beneficiaries.
3. The program aims to create sustainable employment opportunities and skill development by supporting centers of excellence such as the Fragrance and Flavour Development Centre (FFDC) in Kannauj and the Visvesvaraya National Institute of Technology (VNIT) in Nagpur.
4. The skill development training will be conducted by master trainers, skilled artisans, and technical staff. It will provide pedal-operated Agarbatti machines to individual artisans.
5. The program primarily benefits women, artisans, and unemployed youth and provides a source of employment for them. 

The activities and financial assistance for the Agarbatti project include a Skill Development Program (SDP) with the following parameters:

• One hour of theory classes and 5 hours of practical training per day
• Maximum of 20 candidates per group/batch
• Financial expenditure of Rs. 1,00,000 per batch for training by KVIC.
• Funds for training will be released directly to the State Offices
• KVIC may also conduct online training programs.

Component IILeather Footwear Activity under Handmade Paper Leather & Plastic Industry (HMPLPI) vertical of Gramodyog Vikas Yojana (GVY)

The Leather Footwear Repairing / Manufacturing Programme aims to enhance the income of Leather footwear manufacturing / repairing artisans by providing skill development training and, equipping them with modern & automated equipment and, making the manufacturing of footwear/leather goods a respectable profession. It will attract migrant laborers and rural unemployed youths to take a profession with modern techniques.

Component III: Pottery Activities under Mineral Based Industries (MBI) vertical

The Kumbhar Sashaktikaran Programme is a component of the Pottery Activity under the Mineral Based Industries (MBI) vertical of the Gramodyog Vikas Yojana (GVY). It focuses on promoting “Wheel Pottery.” 

Activities Conducted Under Component III:

1. The program includes a training program for pottery artisans with a batch size of 20, a training duration of 10 days, and a financial expenditure of Rs 4.50 lakh per batch (including machinery cost). 
2. The program also includes a Master trainer training program with a batch size of 20, a training duration of 15 days, and a financial expenditure of Rs 3.00 lakh. 
3. The training will be conducted by authorized Skilled Master Trainers, skilled pottery artisans, MBI, KVIC, RPTC Bhadravati (Maha.) technical officials, etc.

Component IV:  Honey Mission Programme / Bee Keeping Activity under Agro-Based and Food Processing Industries (ABFPI) vertical

The Honey Mission, a component of the Agro-Based and Food Processing Industries (ABFPI) vertical under the Gramodyog Vikas Yojana (GVY), aims to provide sustainable employment and increase the income of rural and urban unemployed youth by conserving honeybees and tapping natural resources.

The mission is being implemented by the Khadi and Village Industries Commission (KVIC). It includes providing beekeeping skill development training, tool supply (live colonies and bee boxes – 10 bee colonies per beneficiary and tool kits), and handholding support to beekeepers/farmers.

The training program is ten days long and has 20 candidates per batch. The program includes different types of training, such as essential beekeeping skills, bee colony multiplication, and practical honey extraction training.

The program also includes an awareness program, and state-level beekeepers meet under Honey Mission Awareness Programme. Financial assistance for the awareness program is Rs. 40,000/-.

Component V: Waste Wood, Turn Wood, Wooden Toys, Panchgavya, Cotton Wicks & Cow Dung Log under Rural Engineering and New Technology (RENTI) Industries vertical.

The Rural Engineering and New Technology Industry (RENTI) vertical under Gramodyog Vikas Yojana (GVY) focuses on providing skill development training and modern equipment for waste wood/turn woodcraft and wooden toy production. The goal is to reduce production costs and improve traditional carpentry artisans’ skills.

• The program offers training modules for waste woodcraft, turn woodcraft, and wooden toy making, each with 20 working days.
• Provides tool kits and machines to the trained artisans.

The training cost for

• Waste woodcraft is Rs. 4,47,774/-
• Turn-wood craft is Rs. 7,70,328/-
• Wooden toy making is Rs. 16,47,000/-
• The program also offers a six-day training on Panchagavya-based products at MGIRI, Wardha, which includes the manufacturing process of 10 different Panchgavya-based products.

Component VI: Guidelines of Hand Made Paper and Fiber-related activities under Hand Made Paper, Plastic, and Leather Industry Vertical

1. The Handmade Paper & Fibre Industry aims to train and support individuals looking to set up their units in the handmade paper and fiber sector.

2. The industry targets prospective entrepreneurs, unemployed youths, SC & ST, BPL class, and migrant laborers, as well as individuals affected by conflicts such as surrendered Naxalites, extremists, militants, widows of defense personnel and para-military forces, and families affected by conflict.

3. The goal is to train individuals and groups of artisans to develop knowledge and skills in various areas such as paper conversion, paper plate, and bowl making, paper mache, fiber extraction, and ban making (two-ply rassi/dori) and to mobilize them to become self-sustained units of operation.

4. The industry also aims to optimize local agro-based raw materials and other waste materials to produce paper and fiber products, supporting the local economy and reducing waste.

5. The industry supports existing handmade paper and fiber units to increase their production and marketing capabilities through participation in trade fairs and high-skill training.

6. The industry provides several training programs focusing on hands-on learning and innovative design. The training duration varies with the area of focus, and the trained group of artisans will be provided with the necessary machinery and tools to set up their units.

7. The financial expenditure for training and machinery varies depending on the area of focus.

8. The industry’s overall goal is to provide training and support for individuals and groups looking to set up their units in the handmade paper and fiber sector, providing them with the necessary knowledge and skills to set up and sustain their units.

Component VII: Agro-Based Food Processing Industries

The Agro-Based Food Processing Industries aims to use locally available raw materials and resources to create value-added products. They want to provide artisans, rural unemployed youth, and farmers with a sustainable income. 

They plan to teach new modern technologies to produce various agro-based food products. They also want to provide improved tools, equipment, and machinery for enhanced productivity. 

They plan to use Good Manufacturing Practices when setting up agro-based food products. They also aim to reduce the loss of perishable agricultural products by promoting the setup of teleprocessing units on farms. 

They also intend to provide advanced skills to selected artisans through the Center of Excellence for product diversification, packaging, and standardization.

Component VIII: Service Industry

Rural mechanics such as electricians and plumbers are vital professionals in high demand. Contractors and homeowners need help finding skilled professionals to handle commercial and residential needs.

DigniTEA, State Office, KVIC, New Delhi, conducted a project to develop a mobile tea vending machine on a bicycle to address this shortage and promote micro-entrepreneurship.

This project aimed to create employment opportunities with a low per capita investment among youth in rural and urban areas. The outcome of the project is now being disseminated as a service industry. 

The shortage of skilled professionals like electricians and plumbers has been particularly severe post-pandemic, as the demand for home improvement professionals has increased dramatically. The employment of plumbers is projected to grow by 5 percent from 2022 to 2030.

Conclusion:

The Gramodyog Vikas Yojana provides training programs in various areas such as paper conversion, paper plate, bowl making, paper mache, fiber extraction, and ban making (two-ply rassi/dori). GVY training programs are designed to be comprehensive, with a focus on hands-on learning and the use of innovative design. The trained group of artisans will be provided with the necessary machinery and tools to set up their units, with the financial expenditure for training and machinery varying depending on the area of focus.

Overall, the Gramodyog Vikas Yojana is an important initiative to promote the growth and development of small-scale industries in rural areas. The scheme provides training and support for entrepreneurs, unemployed youths, and marginalized groups to set up their units in the handmade paper and fiber sector. It also aims to rehabilitate individuals affected by conflict and optimize the use of local resources for production. 

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