Solar Charkha Mission

Solar Charkha Mission requires the establishment of Solar Charkha Clusters, which would include a central community and neighboring villages within an 8 to 10-kilometre radius. Further, such a cluster will benefit 200 to 2042 people (spinners, weavers, stitches, and other skilled artisans). Each spinner will be given two charkhas, each with ten spindles. On average, such a cluster is expected to have around 1000 charkhas. A full-capacity cluster will directly employ 2042 artisans. The Indian government has approved 50 such clusters with a budget of 550 crores for 2018-19 and 2019-20. The Scheme is expected to generate over one lakh direct jobs in the approved Fifty (50) Clusters. 

The History of the Solar Charkha Mission: 

• In 2016, a mission solar charkha pilot project was launched in Khanwa village in Bihar’s Nawada district.
• After the success of the pilot initiative, it was officially launched on 27th June 2018 on United Nations Day by the Ministry of Micro, Small, and Medium Enterprises (MSME).

Solar Charkha Mission Objectives:

• Inclusive growth: The purpose of the solar charkha mission is to increase inclusion by hiring women and youth.
• Sustainable Development: usage of solar charkhas aims to promote rural sustainable development.
• Rural Economic Development: The group of villages will act as clusters, and the objective will aim to boost the rural economy through employment generation.
• Arresting Migration: It aims to control migration from regions to cities. According to the 2011 census, 37 percent of Indians are internal migrants.
• Encourage the use of low-cost and innovative technology. 

Coverage under Solar Charkha Mission:

• The goal is to encompass 50 solar clusters around the nation, with the different program components expected to cover about 100,000 artisans and beneficiaries. All Indian States must execute this program.
• It will also be taken into consideration how the clusters are distributed geographically around the nation, with at least 10% of them being in the North Eastern Region (NER), J&K, and mountainous states. 
• Under this scheme, special attention will be given to 117 aspirational districts.

What are Solar Charkhas? 

Solar cells power the solar charkhas. These devices are environmentally sustainable because they run on renewable energy. There will be two charkhas per unit, with ten spindles per charkha. 2 kilograms of yarn may be produced daily by the machine. The 2,000 charkhas would produce 2 tons of yarn as a result.

Criteria for selecting a Promoter Agency / Special Purpose Vehicle(SPV):

A) Existing Institutions for Khadi and Village Industry(KVI) may apply to establish such a Cluster. However, the following conditions must be met: 

• KVI has a good balance sheet and assets that benefit the institution.
• KVI has an artisan base of at least 200 people.
• In each of the previous three preceding financial years, KVI had a sales turnover of at least Rs. One Crore.
• In the previous three years, the number of new artisans should have increased. 

B) Other Institutions such as SPV, Society, Trust, Section 8 Company, or LLP formed under respective statutes might also apply for the setting up of a new Solar Charkha Cluster, subject to the following criteria: 

• Mission & Vision
• With sufficient experience on the Board and Governing Structure.
• Effective Management Information System (MIS).
• Equity and debt are financial resources.
• Profitability and IRR for the previous three years’ financial performance

C) First-timers willing to join the village industry movement through solar charkha clusters may apply for a new cluster using the following criteria: 

• The strongest commitment to the cause of social and rural upliftment.
• Funding commitments from Scheduled Commercial Banks/Venture Capital Funds/Private Equity Funds/NBFCs
• Effective Management Information System (MIS).
• Any other criterion must be authorized by the governing council.

The promoter shall meet the following conditions at the time of application:

1. The promoter would conduct a baseline survey, and at least 200 members would be identified using Aadhaar. At least 50% of the members must be women.
2. The promoter will provide land of at least 20,000 square feet and up to 2 acres, either owned or leased for a minimum of 15 years. The promoter will arrange for the land and will be responsible for any land-related expenses. 
3. The small promoter agency will deposit at least 15% of the required working capital or at least three months of projected working capital in a separate dedicated account only after the SSC has finalized the promoter’s selection and before the first release fund is made.
4. Before the first installment of funds is released, the promoter agency will form a Special Purpose Vehicle (SPV), possibly a Section-8 Company or a Producer Company under the Companies Act of 2013, to demonstrate the integrated model of sewing machines, solar looms, solar charkhas, and so on, with one village serving as the focal village.

Related Frequently Asked Questions and Answers:

1. When was Solar Charkha Scheme launched? 

Answer: After the success of the pilot initiative, Solar Charkha Scheme was officially launched on 27th June 2018 on United Nations Day by the Ministry of Micro, Small, and Medium Enterprises (MSME).

2. What is Solar Charkha Scheme? 

Answer: Solar Charkha Mission requires the establishment of Solar Charkha Clusters, which would include a central community and neighboring villages within an 8 to 10-kilometer radius. Further, such a cluster will benefit 200 to 2042 people (spinners, weavers, stitches, and other skilled artisans). Each spinner will be given two charkhas, each with ten spindles. On average, such a cluster is expected to have around 1000 charkhas. A full-capacity cluster will directly employ 2042 artisans. 

3. How many solar clusters have been approved by the government? 

Answer: The Indian government has approved 50 such clusters with a budget of 550 crores for 2018-19 and 2019-20. The Scheme is expected to generate over one lakh direct jobs in the approved Fifty (50) Clusters. 

4. What are the objectives of the Solar Charkha Scheme? 

Answer: Inclusive growth, sustainable development, rural economic development, arresting migration, encouraging the use of low-cost and innovative technology are some of the objectives of the Solar Charkha Scheme

5. What are Solar Charkhas?

Answer: Solar cells power the solar charkhas. These devices are environmentally sustainable because they run on renewable energy. There will be two charkhas per unit, with ten spindles per charkha. 2 kilograms of yarn may be produced daily by the machine. The 2,000 charkhas would produce 2 tons of yarn as a result.