Jyoti Gramodyog Vikas Yojana — Gujarat Rural Subsidy of ₹25,000 to ₹4.5L

The Jyoti Gramodyog Vikas Yojana is a Gujarat government scheme that helps people in rural areas start their own village industry. It is administered by the Cottage and Rural Industries Department through the Commissioner of Cottage and Rural Industries, Industries & Mines Department, and has been running since 7 September 2015.

The support comes as a margin money subsidy rather than a loan, which means a portion of the project cost does not have to be repaid. The idea is to let an artisan or first-time entrepreneur put together machinery, raw material and a bit of working capital without carrying the whole burden as debt.

The scheme is built for individuals — artisans and entrepreneurs — and for members of active Grade-II Self-Help Groups. Only new village industries qualify, and they must come up in a rural location with a population of up to 20,000 and a 24x3-phase power supply. Projects need to fall in the ₹1 lakh to ₹25 lakh cost band.

Applications are handled offline through the District Industries Centre (DIC) of the applicant's district. If approved and operated successfully, the subsidy reaches the beneficiary's bank account only after the unit has completed two years of running, following verification by the DIC.

• Margin money subsidy of ₹25,000 to ₹4.5 lakh, with no repayment or equity
• 25% subsidy for general category; 30% for SC/ST, women and physically handicapped applicants
• For new village industries in Gujarat's rural areas with a population up to 20,000
• Project costs from ₹1 lakh to ₹25 lakh; open to individual artisans, entrepreneurs and Grade-II SHGs
• Apply offline through your district's District Industries Centre (DIC)
• No fixed deadline — applications run on a rolling basis

The scheme is open to individuals and Self-Help Groups rather than to companies, and every applicant must meet the following conditions.

• Age: The applicant must be between 25 and 50 years old.
• Education: A minimum of Class 10 from a recognised board.
• Experience: At least one year of experience in the proposed line of activity, or relevant training.
• Who can apply: An individual artisan or entrepreneur, or a member of an active Grade-II Self-Help Group.
• Location: The proposed unit must be in a rural area whose population does not exceed 20,000, with a 24x3-phase power supply.
• Project size: The project cost must be between ₹1 lakh and ₹25 lakh.

Not every type of business can apply. Partnership firms, private limited companies, joint ventures, HUFs and similar commercial entities are excluded.

Women, SC/ST applicants and physically handicapped candidates apply on the same terms but receive a higher rate of subsidy.

Jyoti Gramodyog Vikas Yojana — Gujarat Rural Subsidy of ₹25,000 to ₹4.5L is open to startups at any stage. It is open to startups registered anywhere in India.

Jyoti Gramodyog Vikas Yojana — Gujarat Rural Subsidy of ₹25,000 to ₹4.5L accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The assistance is a margin money subsidy, so the amount received is not repaid and no stake in the business is taken. Depending on the project cost and the applicant's category, it works out to somewhere between ₹25,000 and ₹4,50,000.

Subsidy rates

• General category: 25% of a project costing up to ₹10 lakh. For projects above ₹10 lakh, 25% on the first ₹10 lakh plus 10% on the remaining cost, up to the ₹25 lakh project ceiling.
• SC/ST, women and physically handicapped applicants: 30% for projects up to ₹10 lakh. For larger projects, 30% on the first ₹10 lakh plus 10% on the balance.

What the subsidy can cover

• Machinery
• Raw materials
• Working capital, limited to 10% of the total project cost

Land and building expenses are not covered by the subsidy.

When it is paid

The money is not released at the start. It is credited directly to the beneficiary's account after the unit has operated successfully for two years, once the District Industries Centre confirms this.

Jyoti Gramodyog Vikas Yojana — Gujarat Rural Subsidy of ₹25,000 to ₹4.5L is offered by Cottage and Rural Industries Department, Government of Gujarat, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

1. Application at the DIC — the applicant submits the prescribed form with the required papers, offline, to the District Industries Centre.
2. Scrutiny and verification — the DIC processes the form, checks the attached documents and confirms that the eligibility conditions are met.
3. Review of the proposal — the project is assessed for how well it fits the objectives of the scheme.
4. Setting up and running the unit — after approval, the beneficiary establishes the village industry and operates it.
5. Final verification and disbursement — once two years of successful operation are complete, the DIC verifies the unit and the subsidy is released to the beneficiary's account.

Before you apply to Jyoti Gramodyog Vikas Yojana — Gujarat Rural Subsidy of ₹25,000 to ₹4.5L, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Jyoti Gramodyog Vikas Yojana — Gujarat Rural Subsidy of ₹25,000 to ₹4.5L is best suited for startups in India seeking non-dilutive funding of ₹25,000 – ₹4.5L. If that describes your startup, review the eligibility criteria above before applying.