Solar Charkha Mission: Objectives, Features & Benefits

The Ministry of Micro Small & Medium Enterprises introduced its Solar Charkha Mission initiative in June 2018 for the Khadi and Village Industries Commission (KVIC) to implement. A trial project as per this programme was carried out at Khanwa village in Nawada District of Bihar back in 2016.

Read the full article to know more about this scheme.

This scheme envisages the establishment of 'Solar Charkha Clusters', which will focus on one main village and other villages surrounding it within a 10-kilometre range. Each cluster will consist of a minimum of 200 to a maximum of 2042 beneficiaries, including stitchers, weavers, spinners, among other skilled artisans.

Furthermore, every spinner will be provided with two charkhas, each consisting of 10 spindles.  Solar power will run these charkhas, and since it is a renewable source of energy, this programme will also aid in the development of the Green Economy.

The objectives of the Solar Charkha Mission are – 

• Ensuring growth in employment, especially for youth and women, and sustainable development using solar Charkhas in village areas
• Boosting the economy of rural areas
• Curbing the migration to urban areas
• Getting hold of cheap, latest technologies and processes of sustenance

Solar Charkha Mission has the following features – 

• Each cluster would have a maximum grant-in-aid of ₹ 9.60 crores. This amount will be provided in the form of Special Purpose Vehicle (SPV), Capital Subsidy for Individual and interest aid for capacity building and working capital.
• The Solar Charkha Mission is an environment-friendly programme. The charkhas will run on solar power, which is a non-depleting source of energy. This will help in the evolution of the Green Economy.
• This scheme will also give rise to viable employment for artisans.

All Khadi and Village Industry Institutions (KVI) can apply for a Solar Charkha Cluster. However, to be eligible to apply for the same, a KVI must fulfil the following parameters – 

• KVI should have assets and a positive balance sheet in the institution’s favour.
• It should have a craftsman base of 200 or more.
• KVI should have a sales income of at least ₹ 1 crore in each of the previous three financial years.
• It should have an increase in the number of new craftsmen in the preceding three years.

Institutions like Section 8 Company, Trust, SPV, Society or Limited Liability Partnerships under the Companies Act of 2013 can also apply for a new Solar Charkha Cluster.  The eligibility criteria are as follows - 

• Its Governing Structure and Board should have sufficient relevant experience.
• It should have a proper MIS or Management Information System.
• The institution should have financial resources both in terms of debt and equity.
• Financial performance of this institution for the last three years should show profitability and IRR.

First-timers willing to join this village industry movement can also apply for a new Solar Charkha Cluster. The criteria are – 

• Commitment towards the cause of rural and social upliftment
• Funding commitment from NBFCs, Scheduled Commercial Banks, Private Equity Funds or Venture Capital Funds.
• A proper MIS or Management Information System
• Any other criteria put forth by the governing council

The benefits of Mission Solar Charkha are as follows – 

• It ensures comprehensive growth by generating employment, especially for youth and women. 
• This programme works towards achieving sustainable development using solar charkhas in village areas.
• It also contributes to Green Economy.
• In addition, this scheme boosts the rural economy.
• Focuses on curbing the relocation from rural to urban areas.

To get the benefits of the Solar Chakra Mission, individuals have to register themselves at the Udyam Sakhi portal.

The Government of India launched Solar Charkha Mission under Solar Spindle Mission to promote the production of Khadi. After the success of this trial project, the Government of India sanctioned the establishment of Solar Charkha Clusters with a maximum budget of ₹ 550 crores for two consecutive financial years, 2018-2019 and 2019-2020. This scheme also offers five crore opportunities for employment.