Government of India has introduced a scheme to provide money to khadi institutions.This is a flexible, growth stimulating and artisan oriented Market Development Assistance(MDA) Scheme.


  • To give boost to khadi industry including Cotton, Silk and Woollen industry.
  • To improve micro, small and medium enterprises


The Khadi institutions, having valid Khadi certificate and categorized as A+, A, B and C, are only eligible to avail MDA grant from KVIC (Khadi and Village Industries Commission).


MDA shall be allowed @ 20% on cost of production of Khadi (Cotton, Silk, Woollen) and Polyvastra to the extent of production target approved by the Standing Finance Committee (SFC) of KVIC for the year.

How to apply:

The total amount of MDA on production will be claimed by the producing institution from the KVIC and will be distributed amongst the stake holders that are spinners and weavers, producing institutions and selling institutions in the ratio 25%, 30% and 45% respectively. Producing institutions shall submit quarterly claim of MDA based on the actual production achieved during the preceding quarter of the financial year. The difference, if any, would be adjusted in the last quarter of the financial year on the basis of audited accounts by the Chartered Accountants. MDA shall be preferably reimbursed electronically by State/ Divisional office of KVIC on quarterly basis.

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