About this business scheme
The scheme provides margin money subsidies (25–30%) for new rural industrial projects (Rs. 1,00,000/- to 25,00,000/-) to artisans, entrepreneurs, and SHGs, leveraging a 24-hour electricity supply in villages. Beneficiaries must be aged 25–50 years with a Class 10th education.
Launched on 7th September 2015, the scheme "Jyoti Gramodyog Vikas Yojana" by the Commissioner of Cottage and Rural Industries, Industries & Mines Department, Government of Gujarat, aims to promote rural entrepreneurship by providing financial assistance (margin money subsidy) for setting up new village industries in areas with 24×3-phase electricity supply. The scheme targets individual artisans, entrepreneurs, and Self-Help Groups (SHGs) with project costs ranging from Rs. 1,00,000/- to Rs. 25,00,000/-. It offers 25–30% margin money subsidy (higher for SC/ST/women/PH candidates) to incentivize production-oriented ventures. Applications are submitted offline through District Industries Centres (DICs), and subsidies are disbursed after a 2-year successful project run.
Benefits at a glance
| Scheme name | Jyoti Gramodyog Vikas Yojana (JGVY) |
|---|---|
| Launched by | Industries and Mines Department |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | State · Gujarat |
| Official portal | cottage.gujarat.gov.in (link at the end of this page) |
Key facts
| Scheme for | Individual |
|---|---|
| Application mode | Offline |
| Last date | Ongoing (no last date notified) |
| DBT (direct bank transfer) | No |
| Age | 25 to 50 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 25 to 50 years
- 🏘️Rural
- 📝Offline
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
Margin Money Subsidy
For General Category
- 25% for projects up to Rs. 10,00,000/-.
- 25% on first Rs. 10,00,000/- + 10% on remaining cost (up to Rs. 25,00,000/-).
For SC/ST/Women/Physically Handicapped
- 30% for projects up to Rs. 10,00,000/-.
- 30% on first Rs. 10,00,000/- + 10% on remaining cost (up to Rs. 25,00,000/-).
Project Cost Coverage
- Includes machinery, raw materials, and working capital (max 10% of total cost).
- Excludes land/building expenses.
Disbursement
The subsidy is credited to the beneficiary’s account after 2 years of successful operation (upon verification by DIC).
Who qualifies
- The applicant must be aged between 25 to 50 years.
- The applicant must have passed at least Class 10 from a recognized educational board.
- The applicant must possess at least one year of experience in the proposed business activity or relevant training from a recognized institution.
- The applicant must be either an individual artisan/entrepreneur or part of a Grade-II active Self Help Group engaged in small-scale production. The applicant's proposed project must be located in a rural area with a population not exceeding 20,000.
- The applicant must not represent a partnership firm, private limited company, joint venture, HUF, or similar commercial entity.
- For SC/ST, women, and physically handicapped applicants, additional benefits are provided as specified in the benefits section.
Papers to keep ready
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Registration walkthrough
Offline
Step 1: The interested applicant should visit the District Industries Centre (District Ughogh Kendra) of their district, and collect the prescribed format for scheme application from the designated staff.
OR
The interested applicant should take a printout of the prescribed format of the application form.
Step 2: In the application form, fill in all the mandatory fields, paste the passport-sized photograph (signed across, if required), and attach copies of all the mandatory documents (self-attest, if required).
Step 3: Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to the designated staff.
Step 4: Request a receipt or acknowledgement from the staff to whom the application has been submitted. Ensure that the receipt contains essential details such as the date and time of submission, and a unique identification number (if applicable).
Frequently asked questions
What is the minimum and maximum age requirement to apply for this financial assistance scheme?
Applicants must be between 25 and 50 years old at the time of submission to qualify for the scheme.
Is there a minimum educational qualification needed to be eligible for this support?
Yes, applicants must have passed at least Class 10 from a recognized educational board.
Do I need prior experience or training to qualify for this scheme?
You must have either one year of experience in the proposed business activity or relevant training from a recognized institution.
Can Self-Help Groups (SHGs) apply for this financial assistance, or is it only for individuals?
Yes, active Grade-II SHGs engaged in small-scale production, as well as individual artisans/entrepreneurs, are eligible.
Are there any restrictions on where the proposed project can be located?
The project must be set up in a rural area with a population not exceeding 20,000 residents.
Are partnership firms, private companies, or HUFs eligible to apply under this scheme?
No, the scheme excludes partnership firms, private limited companies, joint ventures, and HUFs.
Is there any additional financial benefit for SC/ST, women, or physically handicapped applicants?
Yes, these groups receive a higher subsidy (30% up to Rs. 10,00,000/-) compared to the general category (25%).
What is the minimum and maximum project cost covered under this scheme?
The project cost must be between Rs. 1,00,000/- and Rs. 25,00,000/- to qualify for assistance.
What expenses are covered under the project cost for subsidy calculation?
The subsidy covers machinery, equipment, and working capital (up to 10% of total cost), but excludes land/building expenses.
Is there a minimum investment required in plant and machinery for eligibility?
Yes, a minimum investment of Rs. 5,00,000/- in plant and machinery is mandatory.
How and when is the subsidy amount disbursed to beneficiaries?
The subsidy is credited to a reserve account first and fully released after 2 years of successful operation, verified by the District Industries Centre.
What documents are required to apply for this scheme?
Needed documents include Aadhaar/Voter ID, Class 10 marksheet, training/employment proofs, project proposal with cost estimates, and bank details.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Guidelines [Commissioner Of Cottage & Rural Industries] cottage.gujarat.gov.in
- Subsidy Form cottage.gujarat.gov.in (PDF)
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
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