All About Mission Solar Charkha Scheme

Introduction

Khadi is not a type of fabric. It was a symbol for change. Gandhi, the father of our country, used it to end unemployment and poverty.

Before India got its independence, the British were in charge of the textile industry there. This made it possible for foreign textiles to come into the country and for mass production to start. It was bad for the local textile industry, which had many small spinners and weavers.

Since India’s independence, many artists and weavers have used hand-spun charkhas. The yarn was taking longer to process on these charkhas.

In 2018, the government wanted to increase and improve production in the sector. The “Solar Charkha Mission” was started.

It is a business project that calls for “Solar Charkha clusters” to be set up. The plan is meant to help between 200 and 2024 people. It will have seamstresses, spinners, weavers, and other skilled artisans.

Let’s discuss all about the Solar Charkha Mission Scheme.

Backdrop of the mission

In 2016, a test project called “Solar Charkha” was set up in Khanwa village in Bihar’s Nawada District. After the test project went well, the Indian government gave Solar Charkha its blessing. For 2018-19 and 2019-20, they approved a budget of Rs. 550 Cr. to set up 50 clusters.

In the 50 approved clusters, the scheme gave direct jobs to one million people.

The Solar Charkha Unit was called a Village industry by the Ministry of MSME. The standard Solar Charkha, which has 10 spindles, was judged and approved by experts. After that, the technical details were finished by the ministry, which did this by testing many Solar Charkha models.

“Solar Charkha Clusters” were supposed to be set up as part of the plan. The main villages and other villages within 8–10 km will benefit from these clusters. Also, these clusters will have between 200 and 2042 payees.

Each spinner will have two charkhas, and each charkha will have ten spindles. It is looked at that these clusters will have, on average, about 1000 charkhas. When clusters are at full capacity, they will give direct jobs to 2042 artisans.

Objective of the scheme

The point of the plan is to-

Make sure that the whole economy grows by giving women and young people jobs.
Clusters of solar charkha in rural areas can help with long-term development.
Grow the rural economy and help stop people from leaving the country for the city.
Find low-cost, long-lasting processes and new technologies.
Use solar charkhas to power your home and make it more eco-friendly.
Give women more power by bringing together 5,000,000 women under the mission.
Raise the cotton business.

Functions of the scheme

There are three kinds of functions in the plan. Here’s what they are:

1. Capital Subsidy for SPV or an individual

2000 Solar Charkhas at the highest price of Rs. 45,000/- each and an allowance of Rs. 15,750/- each. Based on the calculation, 1000 spinners will get an extra Rs. 3.15 Cr.
On average, one unit of two solar charkhas will make 2 kg of yarn per day. This will make 2000 charkhas worth of yarn, which is 2 tonnes. Because of this, 500 Solar Looms will be needed to turn yarn into fabric. With a 35% discount, the most you can pay for a loom is Rs. 1,100,000, or Rs. 38,500. Based on the math, the subsidy for 500 weavers will go up to Rs. 1.93 Cr.
SPV will get a subsidy of 100% at the highest rate, which is up to Rs. 1.20 Cr per cluster. It is the cost of a workshed with at least 2000 sq. ft. of space.
SPV will get a capital cost of 50 KW Solar Grid with 100% allowance. It will be the highest rate possible, up to Rs. 0.40 Cr.
SPV will get a one-time subsidy of 35% of its capital costs, up to a maximum of Rs. 0.75 Cr. It will cost per cluster to buy machines that can twist, stitch, and dye. The unit will be able to add value and become self-sufficient if it buys machines.

2. Capacity Building

There are courses planned for the weavers and spinners in the garment section of the project. At a cost of Rs. 0.595 Cr, it is also for the other people in the unit. This price is based on the cost per group for two years.

3. Interest Subvention for working capital

It is expected to have a maximum working capital of 8% of IS. This rate of interest on IS is the same no matter what fees the Financial Institution or Banks charge. It can be used during the six-month time period.

For one group, the working capital amount is Rs. 1,584 Cr. This amount is at the IS rate of 8% for the next six months. The cost of wages for weavers, rovers, and spinners is part of the capital.

Application of the mission

Here are the most important parts of the scheme for the application process:

The mission’s Directorate will put together a list of possible clusters based on what the states say.
To set up the Solar Charkha Clusters, a Promoter Agency (PA) or a person will be chosen.
The work of setting up groups of Solar Charkha can be done by the Khadi Institutions that are already in place.
During the application process, the promoter will have to meet the following requirements:

Do an initial survey
Find 200 members who have an Aadhaar card. Half of them should be women.
Set up land of at least 20,000 square feet and up to 2 acres.
Paid for all of the land’s costs.

At least 15% of the working capital will be put into a separate account by the PA. It should happen after the promoters have made their final choice and before the first money is given out.
Before the first part of the money is given out, the PA will have to make a Special Purpose Vehicle (SPV).
The SPV will set up a model that uses solar looms, solar charkhas, etc., all together. This will have a village that will be the centre of attention.

Target & Duration

The goal of the projects was to reach more than 50 clusters all over the country. All Indian states were able to use this plan. The application for the project had a 2-year time frame.

Role of the State Government in the mission

The State Government will act effectively in the following parts of the scheme:

Give all the approvals needed to set up the group and support based on what people want.
Help projects that are important by giving them the outside structure they need.
The agencies of the State Governments can be a part of the projects by giving grants.
Find the possible places
Get the MSME Ministry to help you set up the array in those places.
Bring the following ideas to the attention of the DPR & Mission Directorate

MSME of the State Government
Department of the industries
Secretary, &
MSME of the Union Territory

Get SSC’s final approval

Monitoring & Assessment

The Ministry of MSME will check on the progress of the projects that are part of the scheme. The ministry will choose people to lead the mission. He or she will get progress reports once a year and every three months. These reports will show how the cluster is doing in terms of money and building.

It will be up to the mission directorate to keep track of each cluster’s progress. It will be done through video conferencing or other forms of ICT.

The mission plan will be judged by a third party based on a midterm analysis of clusters. This will help find the holes in the plan and take the right steps in the middle.

At the end of the scheme’s time, a major assessment study will be done. This will help prove that the project’s goals were met.

Conclusion

The Solar Charkha Scheme has made life much easier for those who work for Khadi. With the solar-powered charkha, artisans’ income has gone from Rs. 140 to Rs. 350. This plan has made it more likely that people will get jobs in rural areas.

With the solar charkhas, workers can now use charkhas without having to push them by hand. This change has increased production and gotten more people from rural areas to join the workforce.

Because they use less water, Solar Charkhas help save power because they use less energy. Khadi is known as a “Green Fabric” because of this.

Call us on +91-8943229346

See GST Filing Packages on https://www.gstsuvidhakendras.org/gstmonthlyfiling/

See GST Registration Packages on https://www.gstsuvidhakendras.org/gst-registration-service/

WhatsApp us on : 8943229346

Click to Chat Now https://wa.me/918943229346

Tag : GST Filing, GST Registration, TDS Filing